New Delhi: Delhi-based SRF Limited, has signed an agreement to acquire of the belting fabrics business of Industex Technical Textiles (Pty) Limited, a South African company today, that would catapult the Indian company to the world's second-largerst maker of industrial belts from its current status of the the third largest.
The deal comes close on the heels of Rs.100 crore definitive agreement signed by SRF for the acquisition of Thai Baroda Industries Limited (TBIL), a Thailand-based tyre cord company, foer which it had signed an agreeement on 27 May.
The South Africa-based company has an annual production capacity of approximately 3,500 tonnes of belting fabrics with annual sales of around $16 million.
SRF, which makes technical textiles, refrigerant gases and a preferred supplier of other fluorochemical products and polyester films, presently has a capacity of 7,500 TPA belting fabrics which are manufactured in its plant at Trichy. India's largest player in belting business, SRF is the market leader with 50 per cent market share.
The company's exports account for 57 per cent of the sales.
The acquisition that is coming through one of SRF's international subsidiaries will cost approximately Rs20 crore including working capital. Post acquisition, the entity will be known as SRF Industex Belting (Pty) Limited.