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Tata Chemicals completes acquisition of precipitated silica business of Allied Silica

A step towards its growth focus on specialty chemicals business

Tata Chemicals announced completion of acquisition of the Silica business from Allied Silica. Earlier this year, the Company had entered into a Business Transfer Agreement with Allied Silica Limited to acquire their business of precipitated silica for a consideration of upto ? 123 crores, on a slump sale basis. This acquisition is a part of the Rs. 295 crore investment approved by the Board during Feb 2017, towards this specialty business.

This agreement includes the acquisition of an existing manufacturing site in Tamil Nadu, which will produce Highly Dispersible Silica (HDS). The specialty chemical product represents a downstream value addition to Tata Chemicals soda ash business, where it ranks among the top manufacturers globally.

Commenting on the move, Mr R Mukundan, Managing Director, Tata Chemicals said, ‘In line with our strategy to grow our specialty business, we are pleased to announce the successful completion of the transaction with Allied Silica. Our immediate focus is to enhance the site’s operational readiness to maximize throughput of the existing product portfolio while meeting requisite safety and quality specifications, and we aim to upgrade the unit by the second quarter FY19. In parallel, we intend to accelerate the business development and commercial production of the specialty grades of Highly Dispersible Silica (HDS) developed by our Innovation Centre in Pune.”

Precipitated silica is a versatile product with applications in many industries including rubber, oral care, coatings and agrochemicals. The acquisition also offers the possibility to make value added silica in the future for applications that demand high performance.

The technology for manufacturing HDS, for which eight patents have already been filed, has been developed at the Company’s Innovation Centre in Pune.

About Tata Chemicals
A part of the over US$ 100 billion Tata Group, Tata Chemicals Limited, is a global company with interests in businesses that focus on LIFE —Living, Industrial and Farm Essentials. The story of the company is about harnessing the fruits of science for goals that go beyond business.

Through its Living Essentials portfolio the company has positively impacted the lives of millions of Indians. Tata Chemicals is the pioneer and market leader in India’s branded Iodised salt segment. Extending its portfolio from salt to other food essentials, TCL unveiled India’s first national brand of pulses, followed by a range of spices. Tata Chemicals has been rated as one of the top 10% in Business and Consumer brands across all industry and consumer brand categories in India by Superbrands™.

The company’s Industry Essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products. Tata Chemicals currently is the world’s third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. With its Farming Essentials portfolio the company through its subsidiary Rallis, has a strong position in the crop protection business. The Tata Chemicals Innovation Centre is home to world class R&D capabilities in the emerging areas of food sciences, nanotechnology and biotechnology.

For more information please contact:
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Tata Chemicals Ltd.
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