India’s SH Kelkar to acquire VN Creative Chemicals

India-based perfumes developer SH Kelkar and Company has obtained approval from its board to acquire start-up VN Creative Chemicals (VNCC).

Financial details of the transaction have not been disclosed. 

Launched recently for aromatic chemical business, VNCC is yet to initiate its operations.

VNCC has purchased Maharashtra Industrial Development Corporation’s (MIDC) leasehold land and manufacturing facility in Mahad, Maharastra, India, for Rs135.9m ($2.11m).

Through the acquisition, SH Kelkar intends to gain control of the land and manufacturing facility, which also includes plant and machinery.

The investment is part of SH Kelkar’s cost-saving strategy for its overseas fragrance division and is expected to allow better flexibility in backend operations.

Estimated to be completed by end of this fiscal year, the acquisition is subject to associated approvals.

Founded in 1922, SH Kelkar primarily manufactures perfumes through its subsidiary, Keva Fragrances. The perfumes are used in personal care, haircare, fabric care and home care products.

According to vccircle.com, the firm’s aggregate fragrance manufacturing capacity was 18,655t per year as of March this year.

The firm is reported to have announced operational revenue of INR10.5bn ($165.2m) in 2016-2017.

In addition to fragrances, SH Kelkar caters to flavours, aroma ingredients and specialty chemicals sectors through its subsidiaries Keva Flavours, Saiba Industries, KV Arochem and PFW Aroma.