Kanoria Chemicals sells division for Rs830 crore

Kanoria Chemicals sells division for Rs830 crore

Kolkata: Kanoria Chemicals and Industries Ltd (KCI) announced on Saturday its decision to sell the assets of its chlor alkali division to Aditya Birla Chemicals (India) Limited (ABCIL), a subsidiary of Hindalco Industries Ltd for Rs830 crore in cash.

The division generated Rs303 crore in revenue and a profit before interest and tax of Rs47 crore in fiscal 2010.

The transaction is expected to be concluded by May, KCI said in a statement.

The proceeds from the sale are to be used to expand KCI’s other businesses, said R.V. Kanoria, its chairman and managing director.

“The land and infrastructure available at our manufacturing facility at Vishakhapatnam provides an immediate opportunity to the company to expand and diversify its business," he added.