Japan’s SDS picks up majority stake in Chennai firm
Jan 30 2013 , Chennai
SDS, subsidiary of Tokyo Stock Exchange-listed $47 billion Idemitsu Kosan, has picked up 36.29 per cent stake held by ePlanet Capital, facilitating an exit to the private equity firm, which had invested Rs 22.5 crore in 2008. Remaining stake was bought from one of the promoters.
The enterprise value of the Rs 120 crore Ramcides was determined to be Rs 182.5 crore. As per the valuation, SDS has bought the stake for around Rs 118 crore. Ramcides has three manufacturing facilities in Jammu, Chennai and Pudukottai in Tamil Nadu, producing four products in the categories of herbicide, fungicide, insecticide and plant nutrient. The facilities totally produce 5000 kl liquids, 1000 tonnes of wettable powder and 10,000 tonnes granules per annum.
“We are into formulations and SDS is a supplier of raw materials and active ingredients. SDS also has robust research and development activities. We have a strong presence in India and Africa and SDS is strong in Asia and has now got into the US and Europe markets. SDS wants to make India its manufacturing hub and also explore the African market. On the other hand, we hope to enter Asian markets like Vietnem and Thailand as well as Australia and US,’ said R Gopal, MD of Sree Ramcides Chemicals.
SDS Ramcides Crop Science will invest Rs 150 crore in five years and set up a manufacturing facility in India for herbicides and fungicides. The JV is also keen on R&D activities and targets to come out with three products in the categories. It looks forward to a turnover of Rs 500 crore in five years and Rs 250 crore by 2014-15.