: Germany-based chemical distributor Brenntag AG has picked up a majority stake in Raj Petro Specialities as part of expanding its footprint in the country, a top official said here today.
Brenntag AG distributes petroleum-related products to customers in India, Asia Pacific, Africa and the Middle East.
"We are a global leader in chemical distribution. This is significant (agreement with Raj Petro) in India. For us it is an incredible opportunity", Brenntag AG Global CEO, Steven Holland told reporters.
The company discussed the acquisition for the last eight months before deciding to pick up stake in Raj Petro, he said.
As per the agreement, Brenntag will pick up 65 per cent stake in the first tranche, which is expected to be completed by April 2018. The remaining 35 per cent will be acquired via the second tranche after a period of five years, he said.
To a query, a company official said Brenntag registered revenues of Euro 180 million and the acquisition will take it to Euro 250 million by April 2018.
Raj Petro Specialities retails own-blended petroleum related products servicing a variety of different product groups, which include transfer oils, white oils and paraffins, petroleum jelly.
Stating that three generations involved in the family owned business, Raj Petro Specialities Director Amit Nanavati said the company was posting profitable business,registering a 20-25 per cent Year-on-Year growth.
"We have been growing 20-25 per cent year-on-year. Our EBITDA in 2016-17 was Rs 66 crore, this year we are expecting it to be Rs 80 crore", he said.
On revenues for 2016-17,he said it was Rs 1,190 crore and was expected to reach Rs 1,350 crore to Rs 1,400 crore in 2017-18.
Noting that diluting 65 per cent stake would make the company a global player alowng with Brenntag,he said the Board of Raj Petro would be reconstituted with three top officials from Brenntag and one representative from his firm.
To a query, Holland said acquisition of Raj Petro would allow the company to expand footprint not only in India, but also in other Asia Pacific countries, Africa and the Middle Eastern markets.
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