Chemicals firm SRF Ltd Saturday said it will sell engineering plastics business to DSM for Rs 320 crore as part of a strategy to focus on core operation.
The company has entered into a definitive agreement to sell its engineering plastics business to DSM, the life sciences and materials sciences company, in an all-cash transaction, amounting to Rs 320 crore.
SRF's engineering plastics business manufactures multiple grades of engineering plastic compounds, catering to the automotive and electrical industries.
"Today marks a significant milestone for our company, as we take another step along our strategic direction of focusing on our core businesses," said Ashish Bharat Ram, Managing Director, SRF.
"While the engineering plastics business has been a profitable and niche business for us, we felt that scaling it into a large business would have taken significant time and in that sense passing it onto a credible player would be logical for everyone involved," he added.
The transaction would enable SRF to strengthen balance sheet and focus its efforts and resources on developing more-and-more complex technologies within the chemicals business.
SRF, which was set up in 1970, has an annual turnover of Rs 5,600 crore. It has twelve manufacturing plants in India, two in Thailand and one in South Africa.
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