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Borosil To Acquire 90.17% Stake In Goel Scientific Glass Works
GSGWL is a public limited company and has two plants located in Vadodara, Gujarat and is a well-established manufacturer of industrial glass process systems as well as laboratory glassware and has a team of expert glass blowers who are skilled at manufacturing borosilicate glass vessels up to a capacity of 500 litres
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Borosil on Friday signed a binding share purchase agreement (SPA) through its subsidiary Klass Pack Limited (KPL) to acquire an initial 90.17 per cent stake (with a provision to increase its stake up to 100%) in Goel Scientific Glass Works Limited (GSGWL). Upon completion of the transaction, GSGWL will become a subsidiary of KPL and in turn a step-down subsidiary of Borosil.
KPL is in the business of primary pharmaceutical packaging and manufactures tubular glass vials and ampoules for the pharmaceutical industry. Upon approval from the National Company Law Tribunal, Mumbai Bench, to the ongoing Composite Scheme of Arrangement, amongst Borosil, KPL and Borosil Technologies Limited (wholly owned subsidiary of Borosil), the SIP business viz. lab glassware, lab instrumentation and pharma packaging business of these three entities will stand consolidated in KPL.
KPL is proposed to be renamed as Borosil Scientific Limited and shall get listed on BSE and National Stock Exchange of India (NSE), informed Borosil in a press release.
GSGWL is a public limited company and has two plants located in Vadodara, Gujarat and is a well-established manufacturer of industrial glass process systems as well as laboratory glassware and has a team of expert glass blowers who are skilled at manufacturing borosilicate glass vessels up to a capacity of 500 litres.
GSGWL are experts in design, fabrication and installation of Industrial Glass Process Systems for Production and Pilot Plants, maintaining globally accepted quality standards. Its’ product portfolio comprises industrial glassware, laboratory glassware, customised glassware products and components and find wide use in the R&D and production departments of the pharmaceutical, defence, agricultural, research and chemical industries.
With this acquisition, Borosil’s SIP business will add a complementary product portfolio to its product range and will allow Borosil to use its brand and strong sales and distribution channel for the purpose of import substitution in this segment.
In recent years, Borosil’s growing SIP business has made significant investments to expand its portfolio with related diversifications in pharmaceutical primary packaging, analytical vials and laboratory bench top equipments. The proposed expansion is in the sphere of glass industrial process systems - a natural extension of Borosil’s SIP product portfolio. In India, the chemicals market is growing at approximately 12 per cent and the Active pharmaceutical ingredients (API) market at 13 per cent - almost triple and double of the world growth rates respectively. India’s R&D spend is likely to rise sharply over the next few years. The world market size in Industrial and Laboratory Glass Process systems is estimated at over USD 150 Million.