Borregaard deal to fetch Camlin Chem Rs 90cr revenue in '12

Camlin Fine Chemicals acquired Borregaard, Italy S.p.A, which is one of the five global producers of Hydroquinone. Hydroquinone is the key raw material for the company's major product.

In an interview with CNBC-TV18, Ashish Dandekar, ED of Camlin Fine Chemical, said, "We expect to get revenues between Rs 70 to 90 crore in this coming financial years from the acquisition." He said that there is big shortage of hydroquinone due the gap in demand-supply and now, the company will be in a stronger position to manufacture and sell it's end product than competitors. Below is the verbatim transcript of Dandekar's interview with Reema Tendulkar and Ekta Batra of CNBC-TV18. Also watch the accompanying video. Q: You completed the Borregaard acquisition sometime back, how exactly is that doing in terms of possibly revenues and a bottom-line and what sort of contribution can we expect? A: We have completed that acquisition just less than a month back and we will be restarting manufacturing by mid April. The product will come out by end of April. We expect to get revenues between Rs 70 to 90 crore in the coming financial years from the acquisition. This will be over and above the organic growth that we expect. Q: Could you tell us more about how core business is shaping up and how much will your organic business contribute your revenues next year? A: Next year, we should cross Rs 200 crore of revenues from organic growth. This year we are likely to end somewhere near Rs 160 crore. It should be roughly Rs 200 crore plus, plus Rs 70 to Rs 90 crore next year. Q: Last time when you spoke about this acquisition you spoke about 2 key products, one of them was hydroquinone which would be a backward integration product for you and the other one was catechol. Could you tell us a little more about both of these and how will they benefit you financially? A: We have right now purchased Hydroquinone. After this acquisition, we will be manufacturing it sort of in house so the margin that was approving to the producers of hydroquinone will be an additional margin for us. But, more than the margin today there is a big shortage of hydroquinone. The prices have been going up because of the gap in demand supply and also because petroleum prices are going up. We will be in a stronger position to manufacture and sell our end product viz-a-viz our competitors. We are already the largest in the world in both these products. So, we will be consolidating our position further in the coming years Q: Can you just go back and give us more perspective on basically what the financials or how much you paid for Borregaard and how exactly did you fund this acquisition? A: We have a confidentiality clause of less than 20 days from the time that we close the acquisitions so, for another 90-95 days I can