Godrej Industries Ltd has announced plans to acquire Shree Vallabh Chemicals’ Ethoxylation Unit II located in Kheda, Gujarat. This strategic acquisition, valued at approximately Rs 45 crore, aims to enhance Godrej Industries’ product range by incorporating Ethoxylation technology into its existing portfolio.
The company’s chemicals business unit has signed a business transfer agreement with Shree Vallabh Chemicals to facilitate this acquisition. This move will allow Godrej Industries to expand its offerings in oleochemicals, surfactants, specialty chemicals, and biotech products, adding significant capacity and technological capabilities.
The Shree Vallabh Ethoxylation Unit II boasts a manufacturing capacity of 24,000 metric tonnes per annum (MTPA) of finished products. This acquisition is expected to provide various cost synergies and enable the company to accelerate its investment timeline, thereby enhancing its ability to cater to new applications and markets.
According to Vishal Sharma, Executive Director and Chief Executive Officer of Godrej Industries (Chemicals), the proposed acquisition aligns with the company’s commitment to growth and innovation. This will not only expand their product offerings but also cater to new customer applications, leveraging cost synergies and boosting overall efficiency.
Godrej Industries’ Chemicals Business, established in 1963, is a key player in India’s chemical industry, focusing on sustainable and renewable feedstocks derived from vegetable oils. The company operates with a commitment to green chemistry and has a global presence in over 80 countries. With manufacturing locations in Maharashtra and Gujarat and a state-of-the-art R&D center in India, Godrej Industries specializes in delivering customized solutions across diverse sectors, including home and personal care, oil and gas, agrochemicals, pharmaceuticals, and more.
The acquisition of Shree Vallabh Chemicals’ Ethoxylation Unit II aligns with Godrej Industries’ strategy to drive growth through innovation and sustainability, further solidifying its position as a leading provider of chemical solutions in both domestic and international markets.