Apcotex acquires Omnova emulsion polymers business in India

Mumbai, India – Apcotex Industries Ltd has acquired emulsions polymers maker Omnova Solutions India Private Ltd (OSIPL) for Rs36cr (€4.7 million) and the settlement of liabilities, Apcotex announced 5 Feb.

With a plant in Valia, Gujarat, OSIPL is India’s sole producer of nitrile rubber and the second largest producer of ‘high styrene rubber’ after Apcotex, the Mumbai-based group said.

Apcotex believes the all-cash deal will create particular opportunities in applications areas for nitrile rubber, nitrile powder and nitrile/PVC blends. These, it said, include rice dehusking rolls, hoses and other automotive and industrial products.

The acquired business will bring gross revenues of Rs200cr to Apcotex, which posted gross revenue of Rs391cr and earnings (EBITDA) of Rs25cr for the fiscal years ended 31 March 2015.

Apcotex said it aims to improve OSIPL’s ‘marginal’ levels of profitability through synergies in areas of raw materials, chemistries, cost optimisation, plant set-ups, R&D and human resources. It will also explore rationalising the asset base of the acquired business.

The bolt-on acquisition gives Apcotex “access to new product lines, new technologies and new processes with a potential to scale up significantly,” said its managing director Abhraj Choksey.

Established in 1992 by Apar Industries Ltd, the OSIPL plant in Gujarat was taken over by Eliokem International of France in 2008. Eliochem was acquired by US emulsion polymers and speciality chemcials group Omnova Solutions Inc. in 2010.