Aditya Birla Chemicals has commissioned and started commercial production at its brownfield project at Renukoot in Uttar Pradesh, with a capacity to manufacture 145 million tonne per day of caustic soda. The company has incorporated a membrane cell technology at the plant.

Renukoot also hosts the largest fully integrated aluminium plant in Asia, that of Hindalco. Another major factory within the suburbs of Renukoot includes the Aditya Birla Chemicals plant and Hi-Tech Carbon unit of Aditya Birla Nuvo's Birla Carbon.

In April 2011, the board of Aditya Birla Chemicals had approved the acquisition of the Chloro Chemicals Division (CCD) of Kanoria Chemicals for Rs 830 crore.

The transaction had catapulted Aditya Birla Chemicals to a higher growth trajectory. CCD has a modern facility located at Renukoot, Uttar Pradesh, manufacturing chlor-alkalis, chlorine derivatives and water treatment chemicals. At that time, the annual capacity of caustic soda at the facility was 115,000 tonne per annum.

As a compelling strategic fit, the acquisition had further strengthened the Group’s standing in the chlor alkali / caustic soda sector. The acquisition solidified the Group’s position as the country’s largest producer of chlor alkali, which is a critical input in the aluminum sector.

Given Birla’s large expansion plans for its aluminium business, the acquisition would serve as an excellent sourcing point.

(This article was published on March 7, 2013)
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