Germany based global Chemical distribution company Brenntag has acquired India’s Raj Petro Specialities Pvt. Ltd. Raj Petro distributes its own-blended brands of petroleum related products to its customer industries in India and overseas.

As per the agreement signed, Brenntag and Raj Petro have initially entered into a 65:35 joint venture that will be closed on April 1, 2018. In the second tranche, Brenntag will acquire the remaining 35 per cent after a period of five years during which the company will be run as a JV, with a possible extension of another one to two years.

According to Steven Holland, CEO of Brenntag Group, “For Brenntag, the acquisition of Raj is a further step into the Indian chemical distribution market which is the 7th largest globally for chemicals and 3rd largest for lubricants. Raj’s existing product portfolio and market presence, capability of its infrastructure and strategic locations make it a compelling investment target to expand our footprint not only in India but also in other Asian Pacific countries, in Africa and the Middle East.”

Henri Nejade, Member of the Management Board of Brenntag Group and CEO Brenntag Asia Pacific, said, “Raj has the widest product portfolio among its national competitors and a strong market presence with its own blended brands. Its facilities are strategically placed at the West and Southeast of India, in proximity to major ports, offering blending and repackaging capabilities, as well as a strong application development team. The cooperation offers Brenntag diverse potential for synergies and future growth.”

Seller’s Family Speaker: “We are delighted to partner Brenntag, a global leader in chemical distribution. Through this joint venture Raj Petro can integrate into Brenntag’s global platform of products, suppliers, customers and best in class industry practices and fully leverage on the synergies to emerge as one of the fastest growing specialty petroleum products companies in South Asia.“

Raj petro is headquartered in Mumbai and Chennai and distributes its own-blended brands of petroleum-related products servicing a variety of different product groups, namely transformer oils, white oils and paraffins, petroleum jelly, process oils, waxes and solvents as well as industrial and automotive lubes. It distributes its products to diverse customer industries in India and other countries in Asia Pacific as well as in Africa and the Middle East.