The board of directors at speciality chemical firm BASF India on Thursday approved the scheme of merger for the absorption of its subsidiary BASF Performance Polyamides India.
The merger of BASF Performance Polyamides with BASF will strengthen the company's position as a solution provider for key industries and enhance market access to key growth markets.
"It will help the company in expanding its existing materials segment and extend value chain through backward integration into key raw materials," said BASF India in a statement.
The polyamides business also has operational synergies with engineering plastics business. "Merging BASF Performance Polyamides with the BASF India will ensure focused management, thereby resulting in the efficiency of management and maximising value to the shareholders," it said.
BASF Performance Polyamides was originally incorporated as Rhodia Polymers and Specialties India January 31, 2011. It is into the business of manufacture and trading of performance polyamides having a manufacturing site at Panoli in Gujarat.
It has a wide range of engineering plastics and serves automobiles, electrical and consumer goods. The audited aggregate revenue for the past three financial years was Rs 131 crore in FY17, Rs 174 crore in FY18 and Rs 247 crore in FY19.
( With inputs from ANI )
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