DSM expands in India with acquisition of SRF’s specialty materials business
SRF’s engineering plastics business realized sales of about US$37 million in 2018 and has seen double-digit growth in recent years, DSM said.
Dutch chemicals company Royal DSM is acquiring the engineering plastics business of SRF Ltd., described as a leading player in India in the development, production, and sale of specialty materials.
The terms of the deal have not been disclosed.
The deal is designed to boost DSM’s position in India, which the company describes in a press release as “fast-growing” business sector.
SRF’s engineering plastics business, founded in 1979, with its main operations located in Pantnagar, India, realized sales of about US$37 million in 2018 and has seen double-digit growth in recent years, DSM said. “[SRF’s] customers are well-known brands in the automotive and electrical and electronics industries in India,” DSM said. “Its business is highly complementary to DSM’s business in India and will allow DSM to further grow its business without having to significantly invest in capital expenditures.”
The acquisition is expected to close in the third quarter of 2019.
DSM Engineering Plastics operates a compounding facility and a research and technology centre in Pune, India, which it opened in 2016.