Piramal Pharma Limited (PPL), a subsidiary of Piramal Enterprises Limited (PEL), and Navin Fluorine International Limited (Navin Fluorine) announced a mutual agreement to increase Piramal’s stake in Convergence Chemicals Private Limited (CCPL) to 100 per cent by buying out Navin Fluorine’s 49 per cent stake in CCPL at INR 65.10 crores.
Recently, PEL transferred its entire stake in CCPL to PPL. CCPL, incorporated in November 2014, develops and manufactures specialty fluorochemicals, primarily starting material required for PPL’s anaesthetics production. As PPL continues to grow its anesthetics business, its resultant requirement for the starting material is expected to increase in the coming years. Similarly, it is expected that Navin Fluorine will leverage the developed chemistry for growth in certain specialty chemical segments.
As a part of this arrangement, Navin Fluorine would obtain from PPL a perpetual license to use the technical know-how for development and marketing of select products and Navin Fluorine would continue to be a key raw material supplier to CCPL. The Agreements are subject to customary regulatory closing conditions.