Ester Industries to sell its engineering plastics biz to Radici Plastics India for Rs289.33 crore

Ester Industries Limited, India’s main producer of Polyester Movies and Specialty Polymers introduced on Could 6, 2022 that it has entered right into a definitive settlement to promote its Engineering Plastic Enterprise to Radici Plastics India Personal Restricted, engaged within the enterprise of producing of Engineering Plastic merchandise in an all-cash droop gross sales transaction, amounting to INR 289.33 crore.

The transaction permits the Ester Industries’ administration to higher deal with its core enterprise of growing area of interest and sophisticated merchandise inside its core Polyester Movies and Specialty Polymer companies.

Moreover, the proceeds from the transaction won’t solely end in stronger steadiness sheet for Ester Industries but additionally present the requisite progress capital for scaling up its capacities in enterprise areas whereby the Firm believes there’s alternative to reinforce worth.

Ester Industries’ Specialty Polymer enterprise which is essentially IP/ patent protected has over time demonstrated its capabilities in growing novel and thrilling merchandise, providing progressive options to some marquee world manufacturers throughout the Manufacturing and Chemical phase. As well as, the Firm’s Movie enterprise has additionally delivered constant progress over the previous a long time and is now being additional scaled as much as additional improve its portfolio of choices.

The Firm’s Engineering Plastics enterprise manufactured a number of grades of engineering plastic merchandise, catering to numerous industries like Automotive, Electrical & Electronics, Shopper durables, Telecom and different industrial functions. The transaction with a worldwide main within the Engineering plastics area can be a mirrored image of Ester Industries’ potential to construct a brand new enterprise and create worth. A number of the Firm’s proficient human sources will now be a part of Radici Plastics India Personal Restricted.

Commenting on the transaction, Arvind Singhania, Chairman and CEO, Ester Industries Restricted stated “At this time unfolds a big chapter in our Firm, as we take one other significant step in direction of our strategic route of specializing in our core companies specifically Packaging Movies and Specialty Polymers the place we’ve got confirmed and well-established capabilities and competencies.

Whereas the Engineering Plastics Enterprise has been worthwhile for the Firm specifically within the final 2 years, this enterprise was basically non – core and was additionally preferrred for divestment to launch capital for core companies of the Firm. We consider that scaling it up into a big enterprise would have taken important sources & time and in that sense passing it onto a globally acknowledged & credible participant can be probably the most logical step for everybody concerned.”

Ester Industries ended at Rs139.45 apiece down by Rs2.75 or 1.93% on the BSE.