Gharda Chemicals to sell stake for research, philanthropy

Gharda Chemicals, the second-largest domestic agro-chemical company, is likely to be sold within a few months. Discussions are on with private equity funds and some of the largest Indian agro chemical companies to sell the promoter stake of 63 per cent in the Rs 950-crore turnover company.

Chairman and Managing Director Keki Gharda, a veteran chemical scientist, and his wife, Abaan, floated a public trust a few weeks earlier to use the sale proceeds for philanthropy and to promote industrial research.

Sources said private equity funds like Carlyle, Kotak and Blackstone were in discussions with Gharda for a takeover. Agrochemical majors United Phosphorous and Tata Chemicals were also interested, but now the Tata group is not pursuing the acquisition. International player Dupont, which tried to acquire Gharda in early 2000s, had then valued the company at over Rs 1,200 crore. Considering the current asset base, the valuation of the privately held company could be in the range of Rs 2,000-3,000 crore, they said.

Gharda said he would not reveal the names of the players in the acquisition race, as discussions are still at a primary stage. “I hope to share some news on this within a few months,” he said.

Gharda Chemicals Limited, established in 1967, is a research-based company with four manufacturing units. The company has won several national awards for technical innovation in the chemical industry and has many firsts in the field of dyestuffs, pesticides, veterinary drugs and polymers.