Borosil to acquire scientific glassware company Goel Scientific Glass Works

Borosil, through its subsidiary Klass Pack Limited (KPL), will acquire Goel Scientific Glass Works Limited (GSGWL), a manufacturer of industrial glass process systems, for an undisclosed price.

The acquisition is aimed at adding a complementary product portfolio to its scientific and industrial products (SIP) business, said Borosil.

In this connection, the Indian glassware company announced the execution of a binding share purchase agreement (SPA) for acquiring an initial stake of 90.17% with a provision to increase it to 100% at a later time.

Upon completion of the transaction, the Indian publicly-listed scientific glassware company will become a subsidiary of Klass Pack Limited, and in turn Borosil’s step-down subsidiary.

Klass Pack is engaged in primary pharmaceutical packaging. It produces ampoules and tubular glass vials for the pharma industry.

Goel Scientific Glass Works has two manufacturing facilities in Vadodara, Gujarat, and is an established producer of industrial glass processing systems and laboratory glassware.

It is said to have a team of expert glass blowers who are proficient in the production of glass vessels made of borosilicate, with a capacity of up to 500 litres.

Goel Scientific Glass Works is into the design, fabrication, and installing industrial glass process systems for production and pilot plants.

Its product range includes industrial and laboratory glassware, custom glassware items and components. They are used extensively in research and development (R&D) and manufacturing departments of the defense, pharmaceutical, agricultural chemical, and research sectors.

The Borosil SIP business will be able to add an additional product range to its existing product line. This will allow Borosil to utilize its brand and its strong distribution and sales channels to facilitate substituting imports in this market.

In recent times, Borosil’s SIP business is said to have made substantial investments to broaden its product range and has also diversified in primary packaging for pharmaceuticals as well as analytical vials and benchtop equipment. The expansion proposed in the area of industrial process systems made of glass is seen as an obvious expansion of Borosil’s SIP portfolio of products.

Borosil will utilize its internal research and development (R&D) capabilities with the highly skilled glass blowing expertise that are available at Goel Scientific Glass Works in order to supply customers with world-class Made in India products, ranging from process controls systems to glass reactors.

Shreevar Kheruka — Borosil MD and CEO said: “We are extremely bullish on increased R&D spending across our customers in various industries. With the product portfolio and glass blowing skills of GSGWL at hand, Borosil’s SIP business will enter into the fast growing process systems market and will give options to our customers to use world class products that are made in India at a much more attractive value compared to the currently imported product availability.

“We see significant synergies with this transaction and are looking forward to integrating our operations and sales with GSGWL.”

For the deal, Borosil engaged Monarch Networth Capital Limited as its exclusive financial advisor while PricewaterhouseCoopers and Khaitan & Co served as its due diligence partners.

Hemant Goel — Goel Scientific Glass Works Chairman said: “We are pleased to share that GSGWL is now going to be a part of Borosil. It is now that I feel truly rewarded for my 50 years hardships and struggle.

“I recall sharing with Mr. Kheruka my dream and inherent wish to see India as a world leader and a feeling that Mr. Kheruka reciprocated by sharing his dream to see Borosil as a world leader. So, we are at a point where our dreams converge and I am now confident of moving towards this direction of achieving and fulfilling them together very soon.”