German major Brenntag acquiring Raj Petro Specialities  

 

Bid to expand footprint in Indian chemical distribution market

Brenntag, the global market leader in chemical distribution, has signed an agreement to set up a 65:35 joint venture by acquiring Raj Petro Specialities Pvt. Ltd. Headquartered in Mumbai and Chennai, Raj Petro distributes its own blended brands of petroleum-related products to diverse customer industries in India and other countries in Asia Pacific as well as in Africa and the Middle East.

Mr. Steven Holland, CEO, Brenntag Group, and Mr. Amit Nanavati, Director, Raj Petro Specialities P. Ltd., with the senior management team

Brenntag will gain a majority stake of 65% with a first tranche to be closed in April 2018 and the remaining 35% via the second tranche after a period of five years, in which the business will be operated as a joint venture, with possible extension of additional 1-2 years.

Steven Holland, CEO, Brenntag Group, said: “For Brenntag, the acquisition of Raj is a further step into the Indian chemical distribution market which is the 7th largest globally for chemicals and the 3rd largest for lubricants. Raj’s existing product portfolio and market presence, capability of its infrastructure and strategic locations make it a compelling investment target to expand our footprint not only in India but also in other Asian Pacific countries, in Africa and the Middle East.”

Raj’s portfolio contains own-blended petroleum-related products, servicing a variety of different product groups, namely, transformer oils, white oils and paraffins, petroleum jelly, process oils, waxes and solvents, as well as industrial and automotive lubes.

Henri Nejade, Member of the Management Board of the Brenntag Group, and CEO, Brenntag Asia Pacific, said: “Raj has the widest product portfolio among its national competitors and a strong market presence with its own blended brands. Its facilities are strategically placed in the west and south-east of India, in proximity to major ports, offering blending and repackaging capabilities, as well as a strong application development team. The co-operation offers Brenntag diverse potential for synergies and future growth.”

The business is expected to generate total sales of approximately EUR 180 million in 2017/18 ending March 31, 2018. Closing of the first tranche with 65% is expected on April 1, 2018, subject to contractually agreed closing conditions.

Brenntag of Germany covers all major markets with its extensive product and service portfolio. Headquartered in Essen, the company operates a global network with more than 550 locations in 74 countries. In 2016, the company, which has a global workforce of around 15,000 employees, generated sales of EUR 10.5 billion ($11.6 billion).

 
 
 
 
 

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