UPL to separate specialized chemicals business to arm

The speciality chemicals division of UPL Ltd, a company located in Mumbai, will be split off and sold for 3,572 crore to a wholly-owned subsidiary, UPL Speciality Chemicals Ltd. Within three to four months of securing shareholder approval, UPL anticipates consummating the deal. Due to the deal, there won’t be any changes to UPL’s ownership structure.

Producing compounds for crop protection, pharmaceuticals, paints, textiles, mining, flavours and fragrances, lubricants, water treatment, personal care, petroleum, and oilfield goods is the specialty chemical business’s area of expertise.

The reorganisation will accelerate growth in the B2B AI Manufacturing business through additional partnerships (the capacity to collaborate with partners outside of the UPL group) and scale up the “Specialty Chemicals” business at a quicker rate by expanding into other high-growth areas.

After the transfer, the specialty chemicals firm will supply active ingredients to UPL and its affiliates for formulations, with UPL Corp. supplying formulations for exports and UPL SAS offering formulations for local sales.

With inter-segmental reporting, the specialised business recorded 16,090 crore in sales for the FY’23. The net asset value is going to be 3,572 crores. The closing price of UPL shares on the BSE was 666.85 per share, a 1.12% decline for the day.