RP-Sanjiv Goenka, Bain Capital, Dorf Ketal in race to acquire Aquapharm

RP-Sanjiv Goenka, Bain Capital, Dorf Ketal are in race to buy Aquapharm.

Kolkata-headquartered RP-Sanjiv Goenka Group, American investment firm Bain Capital and Indian specialty chemical maker Dorf Ketal are reportedly leading the race to acquire Aquapharm Chemicals at a valuation exceeding Rs 4,500 crore.

The Pune-based company makes water treatment chemicals. The promoters, the Mangwani family, would likely sell their entire stake, the Economic Times reported sources as saying.

Moneycontrol could not independently verify the development that comes at a time when global buyers are looking to diversify sourcing beyond China, with investors increasingly interested in the Indian chemicals sector.

Aquapharm has picked Stifel Financial Corp as the banker for the transaction.

Aquapharm, RP-Sanjiv Goenka Group, Dorf Ketal and Stifel did not comment on the development, the report said.

"It's one of the truly international Indian chemical companies, so interest is high," a source was quoted as saying in the report.

Exports, primarily to Europe and North America, account for a significant portion of the company's business. It also has subsidiaries in the US, Saudi Arabia, Europe, and Hong Kong, the report added.

The company acquired US-based Aquapharm Chemicals LLC in 2018 and a year later, Unique Solutions for Chemical Industries Company in Saudi Arabia.

The Saudi unit deals with desalination plants and has major contracts with a local government agency.

Aquapharm's market leadership position in the phosphonates segment as well as its diversification into other products has worked in its favour, the report said.

"The group's longstanding presence has led to healthy relationships with domestic and overseas customers, including Procter and Gamble, Henkel AG, Ecolab Inc, Buckman Laboratories International Inc, and Unilever," the report cited Crisil Ratings as saying in 2022.

Chemicals manufactured by Aquapharm include phosphonates, polymers, biocides and pharmaceutical intermediaries, which are used in detergents, paper, textiles, pharmaceuticals, water treatment and personal care goods among others.

Around 70,000 tonnes of phosphates and other speciality chemicals are manufactured annually at the company’s two units in Maharashtra.