Ami Organics to acquire 55% stake in Baba Fine Chemicals for Rs 68cr

Ami Organics has announced its entry into the semiconductor industry with the acquisition of a 55% stake in Baba Fine Chemicals (BFC), a fine speciality chemicals company, from two partners for INR 68.2 crores.

As per the terms of the deal, Rakesh Gupta, who is the third partner in Baba Fine Chemicals, will continue to stay on the board and lead the marketing and technical development of the fine speciality chemicals company.

The deal has been approved by the board of Ami Organics, which is a Surat-based manufacturer of advance pharmaceutical intermediates and speciality chemicals.

Rakesh Gupta said: “AMI Organics has a strong track record of developing products using advanced technologies in higher volumes which makes them a perfect match for us. | believe our R&D strengths and AMI’s operational excellence will help us grow manifold in the coming years.”

Based in Greater Noida, Uttar Pradesh, Baba Fine Chemicals is engaged in the custom synthesis and manufacturing of intermediates, used in the semiconductor and electronics industry.

As per Ami Organics, the acquisition aligns with the company’s strategy to expand its speciality chemicals division, which will focus on specific products made with modern technology that has very little competition and high barriers to entry.

The deal gives AMI Organics access to the complementary products of Baba Fine Chemicals that are specifically targeted at the electronics industry, specifically semiconductors.

AMI Organics is said to have already developed two electrolyte additives used as solid electrolyte interface in lithium-ion batteries, which are awaiting commercial orders from its customers.

Naresh Patel — Ami Organics Executive Chairman and Managing Director said: “We are delighted to partner with Baba Fine Chemicals, a name to reckon with in the highly complex semiconductor industry. This partnership provides us with the impetus to make a mark in the lucrative and high entry barrier semiconductor industry.

“Our synergies will help scale up BFC’s niche product basket given that they are the only manufacturers in the country in their product category. With an exciting R&D pipeline, we are thrilled to work with the BFC team to scale-up their products at a higher volume.

“The acquisition is in line with our focus of expanding our presence in complex speciality chemicals industry and will complement our product basket of electronic chemicals.”