(i) They are a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. Since the inception in 1989, they have been on a journey of transformation. They initially started manufacturing acetaldehyde and acetic acid in 1992, and soon thereafter moved on to manufacturing of ethyl acetate in 1996. They are currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market (source: Frost & Sullivan Report). Further, post completion of the YCPL Acquisition, their market share in the ethyl acetate market will be further enhanced.

(ii) In 2010, they commenced manufacturing the Specialty Intermediates by acquiring Clariant’s diketene business. They believe that the diversification of their product portfolio into varied chemistries in Specialty Intermediates has enabled them to create a niche for themselves They are the only manufacturer of diketene derivatives in India with a market share of approximately 55 % of the Indian diketene derivatives market in terms of revenue in Fiscal 2020 and one of the largest portfolios of diketene products (source: Frost & Sullivan Report).

(iii) Their products are currently divided into two broad categories, namely the Acetyl Intermediates and the Specialty Intermediates.

a) Acetyl Intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents,

b) The Specialty Intermediates comprises of ketene, diketene derivatives namely esters, acetic anhydride, amides, arylides and other chemicals.

(iv) Their products find application in various high-growth industries, including pharmaceuticals, agrochemicals, dyes & pigments, inks & coatings, paints, printing & packaging, flavours & fragrances, adhesives and other industrial applications. They also propose to diversify into manufacturing of specialty fluorochemicals to which end, we have recently acquired assets including plant & machinery, design and operating paperwork, REACH registrations and patents of Miteni, a manufacturer of organic fluorospecialties and electrochemical fluorination. They believe they are well placed to enter into the high margin specialty fluorochemicals space through this acquisition.

(v) According to the Frost & Sullivan Report, given their expertise in the Acetyl Intermediates and the Specialty Intermediates segments, their entry into the fluorochemicals space will put us at a differentiated position from other chemicals manufacturers.