On November 12, 2024, Godrej Industries Limited entered into a business transfer agreement with Savannah Surfactants Limited (Goa), acquiring its Food Additives and Emulsifier business. This acquisition, which is part of Godrej Industries’ Chemicals Business, will expand its product offerings and strengthen its position in the specialty chemicals market.
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ToggleObjective of the Acquisition
Godrej Industries’ Chemicals Business is a major player in various sectors such as Oleochemicals, Surfactants, Specialties, and Biotech. By acquiring Savannah Surfactants’ business, the company aims to enter the Food & Beverages segment, focusing specifically on Food Esters and Emulsifiers. This acquisition is a strategic move to diversify and expand its specialty chemicals portfolio.
Key Benefits of the Acquisition
The acquisition of Savannah Surfactants’ Food Additives and Emulsifier business is expected to provide the following advantages for Godrej Industries:
- Entry into the Food & Beverages Segment: The acquisition allows Godrej Industries to tap into a new market segment, broadening its product range.
- Strengthened Product Portfolio: The new Food Additives and Emulsifiers will enhance Godrej Industries’ position in the specialty chemicals market.
- Increased Manufacturing Capacity: The acquired business has a production capacity of 5,200 Metric Tonnes Per Annum (MTPA), boosting Godrej Industries’ manufacturing capabilities.
- Commitment to Sustainable Growth: This move aligns with the company’s goals of growth and innovation within the sustainability framework.
Financial Overview
The estimated cost of the acquisition is approximately INR 76 Crore. While specific details about the payment structure are not provided, this investment underscores the strategic value of expanding into the food and beverage sector.
Location and Business of the Acquired Unit
The acquired business, located in Goa, India, specializes in the production of Food Esters and Emulsifiers. These products complement Godrej Industries’ existing chemical offerings and expertise.