Globally renowned specialty chemicals Clariant has entered into an agreement, intent to acquire personal care portfolio of Vivimed Labs Ltd.
Reportedly, the acquisition buzz proved profitable for the Vivimed Labs as the firm is trading higher by 4.4 per cent at Rs. 342 on the BSE. The stock opened at Rs 336 and touched high of Rs 348 on the BSE, informed leading business daily Business Standard.
The transaction value of identified products lines at an enterprise value of Rs 380 crore, informed Vivined Labs in a press release.
“The personal care industry in India offers us immense potential supported by the growing middle-class consumer population and the rising disposable income. This strategic decision will be a significant step towards strengthening our product portfolio and thereby reinforcing Clariant’s long term commitment in the segment”, commented Dr. Deepak Parikh, Region President - India, Middle East and Africa, Clariant. “We believe in the growth potential that India offers and are focussed on expanding our footprint in the region.”
The part of speciality chemicals division's business, which is proposed to be divested, accounted for about 10 per cent of the consolidation revenue from operation in FY2015. A major portion of the receipts will be used to reduce debts thereby saving substantial interest cost going forward, added the release shared by the Vivimed Labs.
Meanwhile, commenting over the note worthy deal, R Kumaresan, Head of Clariant’s BU ICS, India said, “This reinforces our commitment to grow in the personal care space in India. This acquisition will enable us to expand our footprint and provide our customers with end-to-end solutions in sync with the current industry trends. The strong growth perspective of the personal care industry results in a bright future for the ICS business in India.”
Based in Muttenz near Basel/Switzerland, Clariant has employed a total workforce of 17,003. In the financial year 2014, Clariant recorded sales of CHF 6.116 billion for its continuing businesses. The company reports in four business areas: Care Chemicals, Catalysis, Natural Resources, Plastics and Coatings.
The India division of the firm is headquartered in Mumbai, operates in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings.
Group image (L-R): R Kumaresan, Head of Industrial & Consumer Specialties Business, Clariant in India; Dr. Deepak Parikh, Region President - India, Middle East and Africa, Clariant; Santhosh Varalwar – Managing Director & CEO, Vivimed Labs Ltd and Sandeep Varalwar – Executive Director, Vivimed Labs Ltd.)
