Atul, a Lalbhai Group chemical firm, on Friday said it has acquired 51% stake in Mumbai-based Anchor Adhesives for Rs 10 crore.
With this acquisition, the Rs 1,200-crore Ahmedabad-based industrial chemical manufacturer will expand its reach in local and international markets through the joint sales network, said Atul president Rajesh Bhasin.
Atul will also access the local rubber and polymer-based adhesives market, which annually records sales of about Rs 500 crore. “We are targeting to add Rs 30 crore to our adhesives business after the acquisition of the Polygrip brand,” said Mr Bhasin. Polygrip is the leading brand of Anchor Adhesives. Atul’s polymer division grosses revenue of Rs 100 crore every year.
Anchor Adhesives sells under the brand Polygrip and its products are widely used in automobile, footwear, furniture, upholstery, ducts and in carpet manufacturing. For the first two years, Atul will focus on local markets and expand to the Middle East and Africa by 2012. Atul currently sells under the brand Lapox and also plans to scale up its manufacturing capacity by a fifth by the end of this fiscal year. Post acquisition, Atul’s capacity will go up to 30,000 tonnes.
Source: Economic Times