Chemical stock jumps 3 % after it acquires 100% stake in its subsidiary Veeral Organics

The Indian chemical sector is a significant contributor to the economy, valued at over $200 billion (one lakh seventy thousand crore) and growing rapidly. Driven by rising domestic and global demand, India is emerging as a global manufacturing hub for chemicals, with growth opportunities in specialty chemicals, agrochemicals, and petrochemicals. Government initiatives such as the Production Linked Incentive (PLI) scheme and the “Make in India” campaign provide incentives for capacity expansion and innovation. These measures aim to boost exports and reduce dependency on imports.

Key players in the sector include Tata Chemicals (NS:TTCH), Vinati Organics, Atul (NS:ATLP) Ltd., and Aarti Industries (NS:ARTI), known for their diversified product portfolios and global reach. With strong domestic consumption and supportive policies, the sector holds immense potential for long-term growth and sustainability.

Share Price

The shares of Vinati Organics Ltd (NS:VNTI) are currently trading at Rs. 1,881, 3.71% up from its previous close of Rs. 1,813.75 as of December 10, 2024. The stock also touched an intraday high of Rs. 1,935.

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Recent Update

Vinati Organics Limited (VOL) has announced the acquisition of 3,96,50,000 fully paid-up equity shares of its wholly-owned subsidiary, Veeral Organics Private Limited (VOPL). This acquisition, valued at ₹39.65 crore, secures 100% shareholding in VOPL. The shares, priced at ₹10 each, reaffirm VOL’s commitment to strengthening its subsidiary’s operations.

Veeral Organics, established on October 5, 2020, under the Indian Companies Act, operates within the chemical industry, focusing on manufacturing organic fine specialty chemicals. This aligns seamlessly with VOL’s (Vinati Organics Limited) core business activities, ensuring synergy and a consolidated approach toward growth in the specialty chemicals segment.

As VOPL (Veeral Organics Private Limited) is a wholly-owned subsidiary. The acquisition highlights VOL’s strategic efforts to enhance its capabilities in producing high-value specialty chemicals, driving its leadership in the chemical sector.

About the Company

Vinati Organics Limited (VOL) is the world’s largest manufacturer of Isobutylbenzene (IBB) and Acrylamide Tertiary Butyl Sulfonic Acid (ATBS), combining innovation with chemistry to deliver high-value specialty chemicals. Established in 1989, VOL has grown from a single-product manufacturer to an integrated business offering a diverse product portfolio.

With a strong presence across over 35 countries, VOL serves leading industrial and chemical companies in the US, Europe, and Asia. The company specializes in producing specialty

chemicals and organic intermediaries, leveraging advanced technology and sustainable practices. Known for its consistent market leadership and customer-centric approach, VOL continues to drive innovation, strengthen its global footprint, and contribute significantly to the specialty chemical industry.

Conclusion

The acquisition of Veeral Organics exemplifies Vinati Organics’ strategic expansion and commitment to consolidating its market leadership in the specialty chemicals segment. By aligning with government initiatives like the Production Linked Incentive scheme and focusing on high-value organic chemicals, VOL demonstrates a forward-looking approach. This move strengthens the company’s global competitive edge and potential for sustainable long-term growth in the dynamic chemical industry.

Written By: Dipangshu Kundu

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