Business

Rossari To Acquire Unitop Chemicals

Rossari Biotech Limited, has announced the acquisition of Unitop Chemicals Private Ltd, a leading supplier of surfactants, emulsifiers and specialty chemicals. The company's key expertise is centered on surfactants, which is one of Rossari's four core chemistries. Rossari will acquire 100% of the equity capital of Unitop Chemicals for Rs 421 crore. Sixty-five percent of the equity share capital will be acquired upon closure of the transaction, and the balance 35% over the next two years. Rossari plans to fund the investment through cash on balance sheet and doesn't intend to raise any debt for this acquisition. In April 2021, Rossari concluded a preferential issue of equity aggregating to Rs 300 crore to augment the strength of its balance sheet. Unitop Chemicals has three manufacturing sites in India with a total capacity of around 86,000 MTPA and its key facility in Dahej is at close proximity to Rossari's existing facility. The company has a healthy balance sheet profile with zero net debt. Commenting on the business update, Edward Menezes, Promoter & Executive Chairman, and Sunil Chari, Promoter & Managing Director, Rossari Biotech, said, "We are delighted to accelerate the growth momentum at Rossari. Unitop Chemicals is a natural fit with our operations and brings with it immense synergies and complementary growth dimensions. We are excited to drive faster growth with larger revenues, greater technological capabilities, stronger spread of market presence, well-aligned operating segments, and most importantly, a more experienced talent pool with augmented capabilities. We thank the entrepreneurs behind Unitop Chemicals to have built a high quality business, which I am sure together with us will create incremental value for all our stakeholders."