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Tata Chemicals has completed the acquisition of the silica business of Allied Silica for ₹123 crore.
The company last year entered into a business transfer agreement to acquire Allied Silica’s precipitated silica business on a slump sale basis.
The deal was part of the ₹295-crore investment approved by the Board in February 2017, towards this specialty business.
The acquisition includes a manufacturing facility in Tamil Nadu, which will produce highly dispersible silica.
The specialty chemical product represents a downstream value addition to Tata Chemicals soda ash business, where it ranks among the top manufacturers globally.
R Mukundan, Managing Director, Tata Chemicals, said the next focus would be to enhance the operational readiness of the plant to maximise throughput of product portfolio, while meeting the requisite safety and quality specifications.
“We aim to upgrade the unit by the second-quarter FY19. In parallel, we intend to accelerate the business development and commercial production of the specialty grades of highly dispersible silica developed by our innovation centre in Pune,” he added.
Precipitated silica is a versatile product with applications in many industries including rubber, oral care, coatings and agrochemicals. The acquisition also offers the possibility to make value added silica for applications that demand high performance, said Tata Chemicals.
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