India’s Shreyas acquires BPA producer Kesar

10 January 2008 17:09  [Source: ICIS news]

NEW DELHI (ICIS news)--Indian pigments and elastomer masterbatches producer Shreyas Intermediates Limited has bought loss-incurring bisphenol-A (BPA) producer Kesar Petroproducts Limited, both companies said separately on Thursday.

The companies did not disclose additional information on acquisition, but Shreyas acquired Kesar under the aegis of a statutory authority which decides the fate of ailing manufacturing companies. 

The authority first solicited offers for the takeover of Kesar in May 2006.

Both companies are listed on the Mumbai stock exchange. Shreyas said it would now be implementing the directions of the authority which would include financial restructuring.

An analyst said that the acquisition would offer operational advantage to Shreyas because it operates four pigments plants at the same site as Kesar's 10,000 tonnes/year mothballed BPA unit at Lote Parashuram in the Ratnagiri district of Maharashtra state.

Kesar was the last Indian BPA producer to shut down its plant in November 2004 due to uneconomic operations.

The only other producer, Atul Limited, still mentions capacity of 1,500 tonnes/year in its annual report but has not produced this intermediate for captive consumption for several years, according to industry sources.

BPA is used in the manufacture of phenolic resins, polycarbonate resins, epoxy resins and unsaturated polyester resins.

By: Naresh Minocha
+65 6780 4359

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