Vishnu Chemicals Limited (Vishnu), a leading global player in the manufacturing of speciality chemicals, announced the signing of a definitive agreement to acquire a significant Chrome Mining Complex, comprising of Chrome Mine along with processing, mining and infrastructure assets from Volclay Group of Companies in South Africa, through its wholly owned subsidiary Vishnu South Africa (Pty) Limited (Vishnu SA) in a combination of share and asset deal.

Building an agile manufacturing company, Vishnu has ways believed in evolving to meet changing market requirements by staying agile and expanding its capabilities through both forward and backward integration, via organic and inorganic growth.

The current acquisition of Chrome Mining Complex further exemplifies this agility, and will provide Vishnu with a reliable source of Chrome Ore, critical for its existing and future production needs.

The Chrome Mining Complex includes a Chrome Mine spanning over ~1800 hectares with an estimated resource of ~10 million tonnes, ensuring a significant mine life. Additionally, the Complex includes a Chrome Processing Plant and associated mining infrastructure.

South Africa is home to the world’s largest reserves of Chrome Ore, making it a key global supplier. The mineralogy of the chrome ore in the region is suited to Vishnu’s requirements. Additionally, mining is deeply embedded in South Africa's culture, with a skilled workforce, stable business environment and a robust industry infrastructure that supports sustainable operations. Furthermore, the well-developed logistics infrastructure in the country ensures efficient transportation.

The acquisition is expected to provide the following strategic and financial benefits: stable supply of critical raw material, integrated business from sourcing to manufacturing and cost-effective expansion compared to a greenfield initiative.

The transaction comprises of a combination of share and asset deal. The subsidiary of Vishnu Chemicals Limited will own 74% of the mining entity and 100% of the Chrome processing plant, along with the associated mining and infrastructure assets. In compliance with local regulations, foreign owned entities are permitted to hold up to 74% in South African Mining Operations.

The transaction is executed on a debt-free, cash-free and liability-free basis and the total consideration shall not exceed US$ 10 million (approximately Rs. 84 crores), funded through existing cash and internal accruals.

Currently on Care & Maintenance, the plan is to restore the mine and processing plant post completion of acquisition, leveraging its resources and beneficiation expertise to optimize production and unlock its full potential.

The acquisition is expected to be completed within 12 months, subject to customary closing conditions, including regulatory approvals.