Aditya Birla Nuvo sells carbon biz to group firm | india | Hindustan Times
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Aditya Birla Nuvo sells carbon biz to group firm

india Updated: Apr 08, 2013 23:30 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Kumar Mangalam Birla-led Aditya Birla Nuvo on Monday announced the divestment of its carbon black business to group firm SKI Carbon Black (India) Pvt Ltd, for Rs 1,451 crore. The move is seen as an effort to consolidate the company’s carbon black business with the earnings from the sale to be used to reduce debt and strengthen the balance sheet.

“This will support growth plans and ensure greater focus on the other businesses of the company,” the company said in a statement to Bombay Stock Exchange.

“Aditya Birla Nuvo’s carbon black business, by itself, accounts for 2% of the global industry capacity. Moreover, in view of the company’s capital commitment towards funding growth of its other businesses, it is extremely challenging for the company to become a global carbon black player,” the statement added.

With about 2 million tonnes, the Aditya Birla Group is the largest producer of carbon black in the world.

The basis of the transaction is an independent valuation carried out by Deloitte Touche Tohmatsu India Pvt. Ltd.