The Allied Silica deal gets the wheels rolling

TCL has made a greenfield investment in a nutraceuticals plant at Nellore and bought over Allied Silica’s precipitated silica business. Under the deal, TCL has acquired a manufacturing plant in Tamil Nadu, at Cuddalore, near Pudducherry.

The Cuddalore facility will allow TCL to manufacture highly dispersible silica (HDS) using its proprietary technology developed at the Innovation Centre, in Pune (patent filing and approval underway in India and international geographies). HDS, a premium version of precipitated silica, is expected to substitute some of the carbon black traditionally used in tyres, boosting their ‘eco quotient’. Tyres are the biggest application of precipitated silica. A very versatile product, precipitated silica also finds application in toothpaste, agrochemicals, and paints and coatings. There are new applications; like battery separators for electric vehicles.
The Allied Silica acquisition is one slice of the $44mn investment the Company Board has approved, in Feb 2017, toward speciality chemicals.