ERJ staff report (BC)
Mumbai – Aditya Birla Nuvo (ABD) has said in a stock exchange filing that it will sell its carbon black business, Hi Tech Carbon, to SKI Carbon Black (another company of the Aditya Birla Group) for about €203m.
The move is aimed at reducing debt.
ABD, which reported nearly €278m sales in 2012, has three plants in India for making carbon black, but considers it would be unlikely to capture a large enough share of the global carbon black market, officials said in the filing.
"The cash inflow from the divestment of the carbon black business will reduce debt and strengthen [ABD’s] balance sheet. This will support growth plans and ensure greater focus on the other businesses of the company," the filing said.
ABD also has presence in finance, telecommunications and textiles, among other end markets.