Page 58 - Plastics News February 2017
P. 58
Business NEWS
Prince Pipes chairman Jayant SK Innovation to acquire
Chheda raises stake in Vikas Dow Chemical Co's ethylene
Ecotech acrylic acid (EAA) busines
Jayant Chheda, chairman Prince Pipes & Fittings Pvt Ltd, has South Korea's SK Innovation plans acquire Dow
raised his stake in the New Delhi-based Vikas Ecotech Ltd Chemical Co's ethylene acrylic acid (EAA)
to over 8 percent from present 1.26 percent with Rs 34 crores business for US$370 mln, a move that will expand
equity infusion. While Prince Pipes & Fittings Ltd is India’s its range of high value-added chemical products,
third largest PVC pipes manufacturer,Vikas Ecotech Ltd (VEL) as per Reuters. The acquisition, made through its
manufactures organotin heatstabiliser - a lead-free alternative unit SK Global Chemical Co Ltd, will include Dow
additive used in plasticsindustry. Jayant Chheda said Chemical's EAA business in the United States and
Spain. "We will continue strategic investments to
"Similar to global upgrade our business structure and in the long
trends, I see term we aim to be the leader in high-value added
Indian PVC pipe chemicals for emerging markets including China,"
manufacturing
in particular and Kim HyungKun, president of SK Global Chemical,
plasticsindustry said in a statement. Dow said the sale was part of
in general the ongoing regulatory process for its $130 billion
shifting to lead- merger with DuPont (DD.N) and that the divestiture
free stabilisers would be "conditioned" on the two companies closing
and eco-friendly chemical alternatives like organotins over their deal.
the next 3-5 years. The merger of Dow and DuPont, announced in
December 2015, has drawn regulatory scrutiny,
In this context, Vikas Ecotech is the only Indian company that particularly in the European Union. SK Innovation
has built in-house industrial performance ready product and said in January that it would invest up to $2.5 billion
solutions basket that is free of lead & other harmful chemicals in chemicals, oil exploration and battery businesses
and serves as an eco-friendly alternative. It will help the PVC to spur growth. The acquisition, made through its
and other plastic based industries to become environment unit SK Global Chemical Co Ltd, will include Dow
friendly."He added, "My investment in an individual capacity is Chemical's EAA business in the United States and
with the sole intention of being part of Vikas Ecotech's exciting Spain.Ethylene acrylic acid is mainly used as an
future growth journey enabled through a great societal adhesive for wrapping products such as aluminum
benefit - lead-free products and a green world for our future foil.
generations ." Vikas Garg, managing director, VEL, stated, "Our
resolve always has been to shift the industry towards eco-
friendly and lead-free products & solutions. We look forward
to Jayant Chheda's business acumen and strategic guidance
to further cement our market and innovation leadership as
an Indian entity." Prince Pipes & Fittings is already a long-
term and strategic customer of VEL.The union government
enacted a legislation to ban the use of lead inn decorative
home paints segment in the last Parliament session. Similar
legislation is expected to be promulgated for other sectors.
"We believe a similar legislation bores well for the country
and India's PVC industry," said Garg. Vikas Ecotech will utilise
Rs 34 crore for expansion of its R&D facilities, setting up new
manufacturing plants and strengthening its marketing efforts
for both domestic andEXPORTS markets.
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