Privi Fine Sciences Private Limited (PFSPL), based on years of research, has conceptualized a project to convert biowaste into value added products based on technologies developed by PFSPL. Further, Unit-1 of PFSPL has commenced operations and is generating revenue.

Privi Speciality Chemicals Limited is exploring a strategic investment in PFSPL by way of subscription to and/or secondary acquisition of such number of equity shares of PFSPL as aggregate upto Rs.298 crore, equivalent to approximately 50.95% of the issued and paid-up share capital of the PFSPL (Proposed Acquisition).

The Proposed Acquisition will provide part of the funds required for implementation of the Project, The Proposed Acquisition, being a material related party transaction in accordance with the provisions of Regulation 23 of the SEBI Listing Regulations, is subject to approval of the shareholders of the Company, execution of definitive and binding investment agreements and satisfaction of any conditions stipulated therein, completion of due diligence and receipt of necessary approvals as may be required under applicable law.

PFSPL is exploring the field green science chemistry and has achieved success in its research and is currently conducting tests at pilot level for its products Hence, the Company believes that it is an appropriate stage to invest in the business of PFSPL and set up infrastructure facilities for building up commercial capabilities, which will supplement the business operations of the company.

PFSPL has two manufacturing units: first unit located in Lote, Chiplun, Maharashtra is operational; the second Unit located at Jhagadia, Gujarat has 40 acres of land acquired for its 'Green Science' business.

The products to be manufactured using green science chemistry have been successfully developed by the Company through research and testing has been completed at a pilot level. The Company believes that the products proposed to be manufactured by PFSPL can be commercialised by setting up the manufacturing facilities at its Jhagadia unit and, hence, the Proposed Acquisition is required.