Specialty chemicals major Clariant Chemicals (India) Ltd has decided to acquire Vadodara-based company Plastichemix Industries, a masterbatch producer, for Rs 135 crore. After the acquisition, Clariant Chemicals is expected to be the largest specialty masterbatches business producer and aims to double its business over the next five years.

Masterbatch refers to the solid or liquid additive for plastic, used for colouring plastics or imparting other properties to plastics. Clariant Chemicals, which is part of Swiss speciality chemical major Clariant AG, is also to acquire Plastichemix's production facilities at Rania, Kalol and Nandesari in Gujarat. The deal closure is planned for the first quarter in 2014.

To sell leather biz In another development, the company said it is exiting its leather service business by selling it to Stahl Holdings BV, a member of the France-based Wendel Group, for a net consideration of Rs 156 crore.

At its meeting held today, Clariant Chemicals said its board of directors considered and approved the proposal for sale of its leather services. The company added the notice of postal ballot would be sent to shareholders for their approval.

Clariant Chemicals (India) Vice-Chairman Deepak Parikh said the acquisition reinforced the company's long term growth strategy in India and would help the company further elevate its market position.

Sandeep Puri, Vice-President, BU Masterbatches, Clariant Chemicals noted, “With a stronger product portfolio and enhanced customer base, we would be able to service an extensive network. We would also introduce an upgraded technical service laboratory that would support modernisation of our manufacturing practices, leading to customised products. The new facility also offers additional infrastructural capabilities.''

Last December, Clariant Chemicals had divested its textile chemicals, paper specialties and emulsions businesses to American firm SK Capital.