US, German companies eye VGL stake

MUMBAI: US-based Galata Chemicals and Baerlocker Group of Germany are in talks with Indian speciality chemicals maker Vikas GlobalOne (VGL), to buy a minority stake in it for Rs 100 crore, said sources in the know.
"We keep on exploring various growth opportunities. In this regard, we also keep on receiving various proposals at different point of time. However, we have neither finalised nor entered into any formal agreement with anybody at this point of time," Vikas Garg, managing director, VGL told ToI when contacted.A mail sent to Galata Chemicals and Baerlocker failed to elicit any response till the time of going to press.
The Delhi-based company started less than two decades ago as an agency for Reliance Industries (RIL) polymer products has grown into a Rs 350 crore speciality chemicals company.
“VGL plans to raise over Rs 200 crore to fund its expansion plans. While Rs 100 crore would be by way of selling stake and another Rs 100 crore would be raised through a mix of fresh issuance of equity & warrants," said the source adding that bankers are also in talks to rope in a private equity player.
Galata Chemicals is a leading global producer of plastics additives and has been beefing up its operations in India. Recently, it was acquired by Indian speciality chemicals maker — Artek Surfin Chemicals by buying out private equity firm Aterian Investment Partners’ (New York) stake in Galata Chemicals. Baerlocker, which is a global supplier of additives for the plastics industry is also seen beefing up its operations in India.
VGL, which recently started operations in Dubai and Singapore to cater to the Middle East and South East Asian markets produces high-end products used in agricultural pipes, auto parts, wires and cables, artificial leather, footwear components, pharmaceutical and packaging industries.