Avantha Group to sell Solaris ChemTech

Aditya Birla Chem and Kanoria Chemicals deal has pumped up the valuations of the chemicals business and more deals can be expected in this sector.

| Updated: Apr 21, 2011, 01.39 PM IST

MUMBAI: Gautam Thapar's Avantha Group has put it's closely held company Solaris ChemTech on the block and expects a valuation of close to $150 million for the sale, sources with direct knowledge said. Tata Chemicals and few global chemical players from the U.S and Europe have been in talks with the group to buy out the chemicals business.

Solaris ChemTech specializes in bromine chemistry and experts say, with this buy, Tata Chemicals can become a market leader in bromine with 80% market share in India. Bromine chemicals are used in industries and Tata Chemicals has a small bromine business in it's portfolio. Sources, however, do suggest that any domestic player may find the valuations expensive.

Industry experts said that the Aditya Birla Chem and Kanoria Chemicals deal has pumped up the valuations of the chemicals business and more deals can be expected in this sector.

Both, Tata Chemicals and Avantha Group officials declined to comment on Solaris ChemTech sale talks.

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