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Tuesday, Aug 29, 2006

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Chemplast close to buying Polytrusions

R. Ravikumar
M. Ramesh

Chennai , Aug. 28

Chemplast Sanmar Ltd is close to finalising a deal to buy Polytrusions Pvt Ltd, the Chennai-based manufacturers of PVC pipes that are marketed under the brand name `Trubore'.

Sources in both companies confirmed the deal, but while Chemplast said the deal was some distance from finalisation, Polytrusions said the deal could be signed in a week.

The Rs 100-crore company was established in 1986 by a group of technocrats who had earlier worked in the plastics industry. It produces 1,500 tonnes of PVC pipes, about 60 per cent of which go into agricultural bore wells.

It is learnt that with Polytrusions' present owners growing old for day-to-day management of the business and the next generation being busy elsewhere, Chemplast's overtures for buying the company were considered favourably.

Besides, with good rains in the southern States, the demand from the agriculture sector has slowed down.

Polytrusion's foray into other segments, such as PVC pipes for buildings, would call for additional investments, which the present management is not prepared to make.

The buy would fit in well with Chemplast, which is putting up a greenfield PVC resin manufacturing unit at Cuddalore, Tamil Nadu. Polytrusions will be a forward integration, sources said. Incidentally, a sister concern of Polytrusions, Winplex India Pvt Ltd, which too makes PVC pipes, is also likely to be acquired by Chemplast.

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