Adani Wilmar Limited (AWL) announced the acquisition of a 67 per cent stake in Omkar Chemicals Industries Private Limited (OCIPL). The Gujarat-based specialty chemicals firm was valued at Rs 56.25 crore, which will be paid in cash, as detailed in a stock exchange filing by AWL on Thursday.
OCIPL operates a manufacturing plant in Panoli, Gujarat, with an annual production capacity of approximately 20,000 MT of surfactants. The plant, which began operations in FY24, is currently utilizing less than 10 per cent of its capacity. Despite the current underutilization, OCIPL reported a turnover of Rs 13.95 crore in FY24 and has plans to scale up its production capacity.
AWL expects to finalize the acquisition within three to four months, stating that the deal does not require government or regulatory approvals. The acquisition is a strategic step for AWL as it looks to establish a strong production footprint in the specialty chemicals market, which includes sectors such as home and personal care products, food additives, plastics and polymers, agrochemicals, and lubricants and petrochemicals.
“We are pleased to add that these specialty chemicals, which represents further downstream derivatization of our product portfolio. Through this acquisition, AWL will immediately establish a production footprint and capabilities that will allow us to better meet customer requirements,” said Saumin Sheth, Chief Operating Officer of AWL.
Sheth emphasized that the acquisition aligns with the strategic focus of Wilmar International, AWL’s co-promoter, and the world’s largest oleochemical manufacturer. “The downstream derivatization of its basic oleochemicals in select areas is a strategic focus for the company,” Sheth added.
Currently, AWL operates in the specialty chemicals sector through third-party manufacturing and by importing from Wilmar’s plants. This acquisition will enable AWL to produce specialty chemicals in-house, enhancing its ability to cater to diverse market needs and customer demands.