Sadhana Nitro Chem wins NCLT approval for strategic acquisition of Calchem Industries

In a significant step towards market expansion, Sadhana Nitro Chem Ltd. (SNCL) has secured approval from the National Company Law Tribunal (NCLT) for its acquisition of Calchem Industries (India) Ltd., as confirmed on November 8, 2024. The acquisition, valued at INR 9.50 crore, is set for completion by January 27, 2025, marking a key strategic move in SNCL’s growth plan to bolster production capacity and streamline operations in Maharashtra.

Sadhana Nitro Chem Ltd., a leader in intermediate specialty chemicals, will acquire Calchem’s 14.5-acre facility, located merely 250 meters from its existing plant in MIDC Roha. Calchem’s site, equipped for large-scale chemical production with an installed capacity of 78,000 TPA, had ceased operations amid insolvency proceedings. SNCL’s proximity to Calchem’s assets is expected to enhance operational efficiency, reduce logistics costs, and create synergies between the facilities, positioning the company for accelerated growth in the sector.

Key to Expanding Capacity and Market Reach

By incorporating Calchem’s assets, Sadhana Nitro Chem Ltd. aims to meet growing market demands more effectively. The acquisition is anticipated to strengthen SNCL’s foothold in chemical manufacturing and enable forward integration into upstream products, aligning with its long-term strategy. As per the company’s management, the new acquisition reflects SNCL’s commitment to drive shareholder value by optimizing resource allocation and expanding its operational base.

SNCL’s Managing Director, Abhishek Asit Javeri, expressed enthusiasm about the acquisition, emphasizing that the integration of Calchem’s infrastructure will significantly benefit SNCL’s expansion plans. Javeri stated that the proximity of Calchem’s facilities to SNCL’s current plant would facilitate operational synergies and increase overall production efficiency. He noted that the enhanced infrastructure would enable SNCL to innovate and improve production processes, ultimately benefiting stakeholders.

About Sadhana Nitro Chem Ltd.

Founded in 1973, Sadhana Nitro Chem Ltd. has established itself as a key player in the specialty chemicals industry. Operating out of its 22-acre facility in Roha, Maharashtra, the company has garnered recognition for producing a range of chemicals used in sectors like pharmaceuticals, aerospace, and electronics. Known for being one of only two companies globally to manufacture Para Amino Phenol (PAP) from Nitrobenzene, SNCL supports critical industries, including the production of paracetamol and other pharmaceutical products.

In recent years, SNCL has significantly expanded its production capabilities, aided by government incentives under the Production Linked Incentive (PLI) scheme. The company, recognized as a 2-Star Export House, exports around 80% of its products to developed markets, including the United States, Japan, and Germany. SNCL’s clientele comprises several multinational corporations, such as Bayer Crop Science, L’Oreal, and Mitsubishi Paper.

Industry Insight: Expert Views on Strategic Acquisitions

Experts in the chemical manufacturing sector see SNCL’s acquisition as a strategic move to mitigate supply chain disruptions and achieve economies of scale. Industry analysts note that consolidating operations close to existing facilities can lead to faster lead times and cost savings. Furthermore, with a robust export portfolio, SNCL is well-positioned to leverage Calchem’s infrastructure to fulfill international orders more efficiently.

Sadhana Nitro Chem’s latest acquisition is indicative of a broader industry trend where companies are increasingly seeking localized, high-capacity production sites to cater to surging global demand for specialty chemicals. Experts believe that with the incorporation of Calchem’s assets, SNCL is primed to further solidify its market standing and bolster its production capabilities in India.

As Sadhana Nitro Chem takes on this ambitious acquisition, the company is set to unlock new growth avenues and strengthen its competitive edge in the specialty chemicals market. By integrating Calchem’s production assets into its existing operations, Sadhana Nitro Chem Ltd. is expected to deliver enhanced value to shareholders and ensure continued market relevance amid a rapidly evolving chemical industry landscape.