Materials firm Radici Group has expanded by acquiring the engineering plastics business of Ester Industries Ltd. of India.
Radici of Bergamo, Italy, is spending about 35 million euros ($36.5 million) on the acquisition, officials said in a news release. Haryana-based Ester was founded by the Singhania family in 1985 and is listed on the Bombay Stock Exchange.
The Ester unit makes compounds based on nylons 6 and 6/6, polycarbonate, polybutylene terephthalate, polypropylene and other resins. It operates three compounding lines with annual capacity of almost 60 million pounds at a site in Khatima. These operations will move to a new location in Halol next year.
The unit's Estoplast brand makes compounds for the electrical and electronics market. Ester also operates almost 150 million pounds of annual capacity for PET resin and 125 million pounds of annual capacity for polyester packaging films.
"In the Indian market, a strong presence is required to react to growth opportunities in sectors with short and responsive production chains," vice president and chief operating officer Maurizio Radici said in the release.
"The strategy of our High Performance Polymers business has been based on working locally in the closest proximity to customers, to offer not only products but also prompt and efficient service near to their industrial sites," he added. Compounding now accounts for one-third of total Radici sales.
"Having its own production plant in India, the group will be able to build on its well-established commercial presence in the country," Radici High Performance Polymers CEO Luigi Gerolla said.
He added that the Ester site, together with one under construction in China, "is an additional building block to enlarge [Radici's] footprint on the Asian continent and realize its growth potential."
"For us, this is a significant industrial investment," said Danilo Micheletti, chief operating officer of RadiciGroup High Performance Polymers, added.
Radici employs 3,000 worldwide and makes a range of specialty plastics and chemicals. The firm posted sales of just over 1.5 billion euros (US$1.56 billion) in 2021.