Industrials
Raj Petro sold majority stake to Brenntag
About
Raj Group
Raj Group is India’s leading manufacturer of petroleum specialties ranging from process oils, petroleum jellies, waxes, automotive and industrial lubricants catering to large Indian and global customers. The Group offers the full-line of products covering applications across FMCG, food, pharma, energy, rubber industries, automotive and industrial lubricants sold through an array of reputed brands.
Brenntag
Founded in 1874, Brenntag is the global market leader in full-line chemical distribution. The company operates a global network spanning more than 550 locations in 74 countries, 15,000 employees and serving a broad and diversified consumer base.
Brenntag connects chemical manufacturers and chemical users. The company supports its customers and suppliers with tailor-made distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 185,000 customers.
Background
We are pleased to announce a landmark transaction in the Indian Chemical Industry. Brenntag AG (“Brenntag”), the global market leader in full-line chemical distribution, is set to acquire a majority stake in our client Raj Petro Specialties Private Limited (“Raj Petro”), one of the largest privately owned Indian Specialty Petrochemicals manufacturer.
Raj Petro manufactures a wide range of specialty and processed oils and caters to a diverse range of industries such as Food, Pharma, Auto, Power etc. The company is well poised to emerge as one of the fastest growing Specialty Petroleum companies in Asia and is targeting revenues of around INR 1,350 crores for the Financial Year ending March 2018. Brenntag headquartered in Mulheim, Germany has generated revenues of EUR 10.5 billion in 2016 and is listed on Frankfurt Stock Exchange with a market cap of about EUR 10 billion.
Veda Corporate Advisors (“VedaCorp”) was the exclusive financial advisor to Raj Petro & its shareholders. VedaCorp provided comprehensive transaction advisory services covering identification of prospective investors, strategic positioning, valuation and transaction structuring, negotiation and finalization of definitive agreements
Commenting on the transaction, V P Rajan, Associate Director at Veda Corporate Advisors, said, “Raj Petro has created a unique platform and an enviable track record straddling the entire downstream petroleum specialties chain. The combined entity will leverage on significant synergies across sourcing, manufacturing, distribution, R&D as well as customer relationships both in India and key overseas markets.”
“The last few years have perhaps been the most enriching for us at Raj Petro, thanks mainly to our introduction to VedaCorp. The talented pool of professionals at VedaCorp were able to understand our company’s challenges & requirements. VedaCorp’s advice has enabled us to look at our organisation from a different perspective.
With their support, we have been able to find a strategic partner in Brenntag at the right time & at the right terms. We strongly believe this partnership will be mutually beneficial to all the stake holders, across both the companies.
On behalf of all at Raj Petro, I take this opportunity to thank the management team & members of VedaCorp & wish them continued success in their future endeavours.”
Mr Amit Nanavati
Director, Raj Petro.