Borosil Limited has signed a binding share purchase agreement (SPA) through its subsidiary Klass Pack Limited (KPL) to acquire an initial 90.17% stake (with a provision to increase its stake up to 100%) in Goel Scientific Glass Works Limited (GSGWL).

Upon completion of the transaction, GSGWL will become a subsidiary of KPL and in turn a step-down subsidiary of Borosil.

Speaking on this acquisition, Borosil’s MD & CEO, Shreevar Kheruka said, “We are extremely bullish on increased R&D spending across our customers in various industries. With the product portfolio and glass blowing skills of GSGWL at hand, Borosil’s SIP business will enter into the fast growing process systems market and will give options to our customers to use world class products that are made in India at a much more attractive value compared to the currently imported product availability. We see significant synergies with this transaction and are looking forward to integrating our operations and sales with GSGWL.”

GSGWL Chairman, Hemant Goel said, “We are pleased to share that GSGWL is now going to be a part of Borosil. It is now that I feel truly rewarded for my 50 years of hardships and struggle. I recall sharing with Kheruka my dream and inherent wish to see India as a world leader and a feeling that Kheruka reciprocated by sharing his dream to see Borosil as a world leader. So, we are at a point where our dreams converge and I am now confident of moving towards this direction of achieving and fulfilling them together very soon.”

For this transaction, Monarch Networth Capital Limited acted as sole financial advisor and PricewaterhouseCoopers and Khaitan & Co acted as the due diligence partners to Borosil.

In recent years, Borosil’s growing SIP business has made significant investments to expand its portfolio with related diversifications in pharmaceutical primary packaging, analytical vials and laboratory bench top equipment. The proposed expansion is in the sphere of glass industrial process systems - a natural extension of Borosil’s SIP product portfolio.

In India, the chemicals market is growing at approximately 12% and the Active pharmaceutical ingredients (API) market at 13% - almost triple and double of the world growth rates respectively. India’s R&D spend is likely to rise sharply over the next few years. The world market size in Industrial and Laboratory Glass Process systems is estimated at over US $150 million.

Borosil will leverage its internal R&D capabilities along with the specialized glass blowing skills of GSGWL in order to provide its customers with world class made in India products ranging from glass reactors to process control systems.