Shasun to infuse $30-35 mn in Rhodia | india | Hindustan Times
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Shasun to infuse $30-35 mn in Rhodia

Shasun will invest $30-35 million over the next two years in the recently acquired arm of specialty chemicals company Rhodia.

india Updated: Apr 03, 2006 17:39 IST

Shasun Chemicals and Drugs Ltd said on Monday that it will invest $30-35 million over the next two years in the recently acquired arm of specialty chemicals company Rhodia Pharma.

"Shasun will invest $30-35 million over the next two years in Rhodia's custom synthesis business arm which we acquired recently," company CEO N Govindarajan told a news conference.

We are also planning to raise additional capital by diluting promoters stake or issue fresh equity, he added.

Shasun, he said, is expecting turnover to the tune of Rs 750-800 crore in the fiscal 2007-08.

Shasun, which completed the acquisition today, said the acquisition would be funded totally through internal accruals.

"The acquisition has been done through Shasun Group's UK-based wholly-owned subsidiary Shasun Pharma Solutions Ltd and will be funded fully by internal accurals and debt," he said.

This will include the amount used for acquisition and also to increase the capacity, he added.

The transaction includes all of Rhodia's development and custom manufacturing services catering to innovator and emerging pharmaceutical clients in US, Europe and Asia.

Rhodia posted Euro 60 million revenues in the year ended December 31, 2005 and employs 349 people.

The deal also includes acquisition of Rhodia's UK manufacturing sites at Dudley in Northumberland, England and Annan in Scotland and also the current management team Rhodia and the existing employees.