Sector News

Nihon Nohyaku buys around 76% stake in Hyderabad Chemicals Ltd

November 27, 2014
Chemical Value Chain
Nihon Nohyaku, a Japanese fine chemicals maker has acquired around 76% stake in Hyderabad Chemicals Ltd. in a Rs 450 crore transaction, three people with knowledge of the development said. The transaction is yet another instance of the growing interest from Japanese corporations to have base in India. 
 
Tokyo-listed Nihon Nohyaku will get a large Indian base along with the technical know-how that Hyderabad Chemicals has developed over the last three decades. The company announced its acquisition on the Tokyo Stock Exchange on Thursday. 
 
“The promoters Shroff family has sold around 74% stake in the company to Nihon. The promoters will continue to manage the company alongwith members of Nihon,” a person involved in the deal said. 
 
Promoted by Shroff Family of the Excel Shroff Group, Hyderabad Chemicals is being valued at around Rs 620 crore. 
 
The company that manufactures technical grade pesticides and pesticides formulations. The company has a large research and development division that helped Nihon zero in on it, investment bankers privy to the transaction say. For the financial year ended 31 March, 2014, the company had a turnover of $65 million. 
 
“Generally, agrochemical companies are valued at 1.5-2.5 times their earnings,” a banker said on condition of anonymity. 
 
While KPMG advised Nihon on the transaction, EY’s M&A Advisory team was the exclusive financial advisor to Hyderabad Chemicals Ltd. 
 
The Rs 100 billion agrochemical industry in India is one of the largest market in Asia and is expected to attract many more multinational companies to come hunting for mergers and acquisitions, say experts. “This deal will pave way for further consolidation in the industry. Since India is a big market with good assets with sound technical knowhow and cost advantage are available, we will see a large number of global companies coming to India in near term,” a consultant said. 
 

comments closed

Related News

January 22, 2023

Ineos to Acquire MBCC’s Admixtures Business

Chemical Value Chain

Ineos Enterprises has signed an agreement to buy MBCC Group’s admixture business from Sika. The deal is required by European antitrust regulators to approve Sika’s purchase of the MBCC Group, formerly BASF Construction Chemicals. The transaction is scheduled to complete in the first half of this year, subject to regulatory approvals.

January 22, 2023

Carbios and Novozymes strengthen partnership for PET bio-recycling

Chemical Value Chain

Carbios and Novozymes are entering an exclusive long-term global strategic partnership to ensure the production and supply of Carbios’ proprietary PET-degrading enzymes at an industrial scale. Together the companies will build the world’s first biological PET-recycling plant due to start production in 2025 in Longlaville, France, as well as Carbios’ future licensee customers.

January 22, 2023

Borealis adds crosslinked PE to circular portfolio

Chemical Value Chain

Pyrolysis process keeps difficult-to-recycle crosslinked polyethylene like XLPE and PE-X in the circular loop. Chemically recycled grades in the Borcycle™ C portfolio are ISCC PLUS certified according to the mass balance methodology. EverMinds™ approach provides innovative and viable solutions to recycling challenges in the Wire & Cable and Infrastructure industries.

How can we help you?

We're easy to reach