The Gurugram-based chemical firm, SRF has proclaimed that will sell its engineering plastics entity to DSM for INR 320 crore. The chemical firm is selling the subsidiary business as a part of the strategy to concentrate its core business.
SRF is essentially a chemical firm engaged in producing speciality and industrial intermediates. The company is now selling its engineering plastics business to DSM, under the mutually consented definitive agreement, for the sum of INR 320 crore.
SRFs plastic business produces multiple types of engineering compounds, rendering to electrical and automotive industries.
"Today marks a significant milestone for our company, as we take another step along our strategic direction of focusing on our core businesses," Managing Director of SRF, Ashish Bharat Ram told the Indian daily news, Money Control.
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, Ashish Bharat Ram added, as reported by the Indian daily news, Money Control.
After the deal, SRF will be fortified monetarily and further, focus on its primary business and develop more intricate technologies in the chemical business.