Global investment banking firm-Singhi Advisors acted as sole advisors to the transaction
Mumbai: Mumbai headquartered Dorf Ketal, India’s largest research-based specialty chemicals manufacturer with an annual revenue of Rs 2500 crore, has entered into an agreement to acquire the business of Ahmedabad based Khyati Chemicals.
The deal will help Dorf Ketal to diversify its revenue stream and enter into performance chemicals business where Khyati Chemicals has a strong presence. Promoted and professionally managed by the first- generation entrepreneur, Khyati Chemicals, a Rs 225 crore company is India’s second largest player in the Optical Brightening Agents business having valuable customers like Unilever, Ghadi, Trident India Papers etc. The Company competes against the likes of Deepak Nitrite, Meghmani, Archroma etc., and has been the margin leader & major independent player in the country in its line of business.
Definitive agreements have been signed between current promoters of Khyati Chemicals India Pvt Ltd and Dorf Ketal Chemicals India Pvt Ltd to acquire 100% stake. The deal will result in Khyati Chemicals becoming a wholly-owned arm of Dorf Ketal.
Global Investment banking firm Singhi Advisors acted as the exclusive financial and strategic advisor to the transaction.
Khyati Chemicals India Pvt Ltd is a Rs 225 crore company and ranks as India’s second largest player in the business of Optical Brightening Agents (OBA). The Ahmedabad based company is a consistently profitable, cash generating company in the performance chemical space, catering to high growth segments like Detergents, Textiles & Papers, and servicing global markets with quite a diversified revenue stream.
Dorf Ketal is the largest Indian manufacturer of research-based specialty chemicals such as specialty catalysts, lubricant additive components, oil field chemicals, fuel additives, amine removal agents, visbreaker antifoulant etc. which go into the use of refineries, petrochemical plants and ancillary units. The company holds more than 300 patents including 50 US patents and 1/3rd of the crude refined in the world’s largest refineries is treated using the products manufactured by the company. It has direct presence in the countries such as the US, Netherlands, Brazil, Singapore, Malaysia, China and Fujairah through its wholly owned subsidiaries.
Sudhir Menon, MD, Dorf Ketal said: “We believe that Khyati Chemicals and Dorf Ketal together would form a strong organization where Dorf Ketal can use its technological leadership and strong global sales force to provide global reach to the products conceptualized and developed by Khyati Chemicals. Khyati Chemicals has a stronghold in export markets like Brazil, China, Argentina, Germany, Indonesia, Thailand etc and given our experience and offices in these key markets we would be able to add significant value towards execution of the global growth plan. We are quite excited to enter this new line of business and leverage our capabilities of working in the global markets”
Mahesh Singhi, Founder and Managing Director, Singhi Advisors said: “Singhi has a long-standing relationship with both Dorf Ketal as well as Khyati Chemicals and takes pride in having been involved in `cultivating and closing’ this transaction. We deeply cherish our relationship and are enthusiastic about the growth for Khyati Chemicals in the hands of Dorf Ketal with this transaction”. He added, this transaction marked Singhi Advisors 5th deal in the Chemicals Sector in the recent past.”
Having achieved leadership position in its current line of business, Dorf Ketal wanted to diversify its revenue stream and enter into lucrative performance chemical business and Khyati Chemicals offered a perfect fit having valuable customers like Unilever, Ghadi, Trident India Papers, JK Papers, Khanna Papers etc. “The Promoters of Khyati Chemicals agreed to divest 100% equity stake in their company to a strategic buyer who could take the company to the next level of growth and fully exploit its global potential. Dorf Ketal seized this opportunity to diversify and add significant value towards execution of the global growth plan”, said Sudhir Menon of Dorf Ketal.
About Khyati Chemicals
Incorporated in 1984, Khyati Chemicals India Pvt Ltd manufactures optical whitening agents used in detergent, textile and paper industries. It is recognised as a quality player with 98% purity of crude OBA manufactured and has a registered Trademark for its OBAs. The company has a stronghold in export markets like Brazil, Argentina, Germany, Indonesia, Bangladesh, Thailand, etc. Khyati Chemicals is a consistently profitable, cash generating and zero debt company and the second largest OBA manufacturer in India contributing to over 18% share of the Indian OBA production and 15% share of exports from India. The company’s manufacturing facility is located at Ahmedabad, Gujarat and it houses integrated ETP Facility which is recognised as one of the best in Gujarat. The company is a ISO 9001:2000 (Revalidated 2008), ISO 14001:2004, ISO 50001 – Energy Management, OHSAS 18001:2007, GMP & HACCP Certified.
About Dorf Ketal
Incorporated in 1992, Dorf Ketal Chemicals India Pvt Ltd, is promoted by Mr Subodh Menon and Mr Sudhir Menon. The company manufactures process chemicals, specialty catalysts, oilfield chemicals and fuel additives in the niche segment of hydrocarbons used in refineries and petrochemical plants. The company being the market leader in organic titanate and zirconate technologies, is a preferred supplier of a variety of performance engineered specialty chemical programs in countries as diverse as UAE, South Korea, Saudi Arabia, Brazil, Qatar, Japan, Kuwait and the USA The Company has extensive reach and global presence with domestic and global manufacturing facilities located in India (Gujarat, Maharashtra), Brazil and in the USA. The plants are certified for ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. Inventing new chemistries is one of Dorf Ketal’s core strength. Dorf Ketal has strong global footprint and leverages strategic acquisitions, partnerships to further accelerate profitable growth.
This article was shared with Prittle Prattle News as a Press Release.
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