Press release

Envalior expands in India with acquisition of SRF Ltd.’s Specialty Materials business

Heerlen, NL, 13 May 2019 08:00 CEST

Envalior, a global science-based company in Nutrition, Health and Sustainable Living, announces that it has reached agreement with SRF Ltd., to acquire its Engineering Plastics business, a leading player in India in the development, production and sale of specialty materials. Envalior will pay a consideration of INR3.2 billion (about €38 million) to SRF Ltd. The acquisition is expected to close in Q3 2019, subject to customary closing conditions.

The acquisition will further cement Envalior Materials’ position in India as the leading player in, among other things, engineering plastics in this fast-growing economy and fits with its strategic aim of generating leading positions in fast-growing economies. SRF’s Engineering Plastics business, founded in 1979, with its main operations located in Pantnagar (India), realized sales of about US$37 million in 2018 and has seen double-digit growth in recent years.

The company’s customers are well-known brands in the Automotive and Electrical & Electronics industries in India. Its business is highly complementary to Envalior’s business in India and will allow Envalior to further grow its business without having to significantly invest in capital expenditures. With strong anticipated market growth in the coming years, fueled by increasing domestic demand from a growing middle class and weight reduction/metal replacement in automotive, this acquisition will help Envalior to meet the current and future needs of its customers in India and saves Envalior a capacity investment required for further growth in India.

In 2018, Envalior’s total sales in India, realized with about 550 employees, amounted to about €250 million, an increase of 17% compared to 2017. Envalior is active in both Nutrition and Materials in the country. Envalior Engineering Plastics operates a compounding facility and an R&T center in Pune.

For more information

Jos van Haastrecht

Global Director Communications & External Affairs
Envalior Materials
+31 6 2096 3786