Tata Chemicals Acquires Precipitated Silica Maker, Allied Silica

Tata Chemicals has inked a deal with Tamil Nadu based Allied Silica Ltd. to acquire its precipitated silica business for Rs. 123-crore on a slump-sale basis.

The business transfer agreement to buy out the highly dispersible silica manufacturing facility of the company in Tamil Nadu is expected to close in three months. This acquisition is a part of the Rs. 295-crore investment in the specialty business approved by the board in February, said Tata Chemicals.

The specialty chemical represents a downstream value addition to Tata Chemicals’ soda ash business, where it ranks among the top manufacturers globally.

Mr. R. Mukundan, Managing Director, Tata Chemicals, said the acquisition is another step to build a technologically-enabled differentiated business with greater customer focus. “This is in line with our focus to grow our specialty business, along with our consumer business,” he added.

Versatile product

Precipitated silica is a versatile product with applications in many industries, including rubber, oral care, coatings and agrochemicals. The acquisition also offers the possibility to make value-added silica in the future for applications that demand high performance.

The Innovative Centre of Tata Chemicals in Pune has developed new technology for manufacturing highly dispersible silica (HDS) and has already filed eight patents.