Borosil Limited (Borosil) has signed a binding share purchase agreement (SPA) through its subsidiary Klass Pack Limited (KPL) to acquire an initial 90.17% stake (with a provision to increase its stake up to 100%) in Goel Scientific Glass Works Limited (GSGWL).
Upon completion of the transaction, GSGWL will become a subsidiary of KPL and in turn a step-down subsidiary of Borosil, a statement said.
KPL is in the business of primary pharmaceutical packaging and manufactures tubular glass vials and ampoules for the pharmaceutical industry. Upon approval of the Hon’ble National Company Law Tribunal, Mumbai Bench, to the ongoing Composite Scheme of Arrangement, amongst Borosil, KPL and Borosil Technologies Limited (wholly owned subsidiary of Borosil), the SIP business viz. lab glassware, lab instrumentation and pharma packaging business of these three entities will stand consolidated in KPL. KPL is proposed to be renamed as Borosil Scientific Limited and shall get listed on BSE and National Stock Exchange of India (NSE), the statement said.
GSGWL is a public limited company and has two plants located in Vadodara, Gujarat and is a well-established manufacturer of industrial glass process systems as well as laboratory glassware and has a team of expert glass blowers who are skilled at manufacturing borosilicate glass vessels up to a capacity of 500 litres. GSGWL are experts in design, fabrication and installation of Industrial Glass Process Systems for Production and Pilot Plants, maintaining globally accepted quality standards. Its’ product portfolio comprises industrial glassware, laboratory glassware, customized glassware products and components and find wide use in the R&D and production departments of the pharmaceutical, defence, agricultural, research and chemical industries.
With this acquisition, Borosil’s SIP business will add a complementary product portfolio to its product range and will allow Borosil to use its brand and strong sales and distribution channel for the purpose of import substitution in this segment, according to the statement.
Speaking on this acquisition, Borosil’s MD & CEO, Shreevar Kheruka said “We are extremely bullish on increased R&D spending across our customers in various industries. With the product portfolio and glass blowing skills of GSGWL at hand, Borosil’s SIP business will enter into the fast growing process systems market and will give options to our customers to use world class products that are made in India at a much more attractive value compared to the currently imported product availability. We see significant synergies with this transaction and are looking forward to integrating our operations and sales with GSGWL.”
The GSGWL Chairman, Hemant Goel said, “We are pleased to share that GSGWL is now going to be a part of Borosil. It is now that I feel truly rewarded for my 50 years hardships and struggle. I recall sharing with Mr. Kheruka my dream and inherent wish to see India as a world leader and a feeling that Mr. Kheruka reciprocated by sharing his dream to see Borosil as a world leader. So, we are at a point where our dreams converge and I am now confident of moving towards this direction of achieving and fulfilling them together very soon.”
For this transaction, Monarch Networth Capital Limited acted as sole financial advisor and PricewaterhouseCoopers and Khaitan & Co acted as the due diligence partners to Borosil.
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