Specialty chemicals maker Camlin Fine Sciences Ltd has acquired a 51% stake in Chinese chemical firm Ningbo Wanglong Flavors and Fragrances Company Ltd for $6.28 million (around Rs 40.5 crore) in cash.
Camlin bought the stake along with its Italian unit CFS Europe SpA, it said in a stock exchange filing on Wednesday.
It added that the deal will help Camlin become the world’s third-largest producer of vanillin, which is used by food and flavour companies as well as perfume manufacturers to enhance fragrance.
Ningbo Wanglong was incorporated in November 2015 and is based out of Zhejiang province in east China. The firm makes flavour and fragrance products. It has a production facility at Yuyao in Zhejiang province.
Camlin was founded in 1931. The company makes antioxidants, aroma ingredients and performance chemicals. It has a plant in Ravenna (Italy) to produce catechol, which is used to make vanillin and ethyl vanillin.
In 2016, Camlin acquired a 65% stake in Mexico’s Dresen Quimica SA de CV, along with its group companies, for $7.8 million (Rs 53 crore) in cash.
In 2016-17, Camlin reported a net loss of Rs 4.28 crore on total income of Rs 548.73 crore.