Mafatlal sells unit to Kanwar

MUMBAI, Dec 3: Mafatlal Industries Ltd (MIL) and Associates today signed an agreement with Onkar S Kanwar group - which runs Apollo Tyres...

MUMBAI, Dec 3: Mafatlal Industries Ltd (MIL) and Associates today signed an agreement with Onkar S Kanwar group – which runs Apollo Tyres – to divest their stake in the rubber chemicals division of Nocil for a consideration of Rs 55 crore.

According to a statement issued here, the rubber chemicals division is proposed to be vested in a new company called Polyolefins Rubber Chemicals Ltd (PRCL) pursuant to a scheme of demerger of Nocil, after approval by the Mumbai High Court.

The acquisition of stake in PRCL will herald Kanwar group’s entry into the business of specialty chemicals, which it has chosen as a focus business besides their tyre business.

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The rubber chemicals division’s capability of fast growth is proven by the fact that in a little over a decade, it moved up from number three to the number one position consistently outperforming industry growth.

As a significant exporter to highly competitive and prestigious markets like Asia Pacific, Europe and North and South America, the rubberchemicals business services customers through a network of reputed distributors across the globe, the release said.

Both Arvind Mafatlal group and Kanwar group said the new rubber chemicals company will continue to function independently under the professional management and follow policies that were adopted as a division of Nocil.