Nirma To Acquire US-Based Firm

Detergent maker Nirma Ltd unveiled its plans to buy US-based soda ash producer Searles Valley Minerals (SVM) for an undisclosed sum. When the deal is wrapped up, Nirma would lead the producers'' market in soda ash (sodium carbonate), a key ingredient to make soaps and detergents. SVM''s annual production stands at 1.9 million tonnes. Nirma''s existing manufacturing capacity is one million tonnes. Soda ash is a high-volume, low-value product and finds application in production of detergents, glass and chemicals.

Besides Nirma, there are four soda ash producers in India - Tata Chemicals, Gujarat Heavy Chemicals Ltd, DCW Ltd and Tuticorin Alkalis Chemicals & Fertilisers. According to company sources, Nirma expects the acquisition to boost annual revenues to more than Rs 35 billion. Competition in the sector is mainly price based. Soda ash constitutes about 25-30 per cent of the domestic chlor-alkali market with SVM being the only US producer of soda ash, sodium borates, boric acid and sodium sulphate.