Promoters to hive off 63% stake in Gharda Chemicals promoters to encourage research, philanthropy

21-Jul-09

Gharda Chemicals, the second-largest domestic agro-chemical company, in talks with private equity funds like Carlyle, Kotak and Blackstone and Agrochemical majors United Phosphorous to sell the promoter stake of 63% in the Rs 950-crore turnover company. Chairman and Managing Director Keki Gharda, a veteran chemical scientist, and his wife, Abaan, floated a public trust a few weeks earlier to use the sale proceeds for philanthropy and to promote industrial research. Dupont, in a bid to acquire Gharda in early 2000s had valued the company at over Rs 1,200 crore at that point of time. Considering the current asset base, the valuation of the privately held company could be in the range of Rs 2,000-3,000 crore. The trust will be run by a group, led by four leading personalities in the society. It will have two arms, Gharda Foundation, which will run a string of hospitals and schools and undertake social activities, and Gharda Advanced Technologies Ltd (GAT), which will promote innovation among young scientists. Gharda Institute of Science and Technology (GIST) at Dombivli, an advanced research and development centre which houses about 30 scientists, will become part of GAT. This will also have a pilot plant to make samples, said Keki Gharda.