Bain buys Indian industrial chemicals business

Financial terms were not disclosed, although The Economic Times said the deal valued the company at INR 24bn (USD 291m). Bain, which typically writes equity cheques in a range of USD 100m-USD 400m, is currently raising its fifth pan-Asia buyout fund with a target of USD 5bn.

Porus was founded in 1994 in Hyderabad with a single factory and a focus on chemicals used in sulpha-based drugs, which are used for their antibacterial properties. It expanded across a range of speciality polymers, electronic chemicals and agrochemicals, and now has four factories.

The company claims its investments in R&D, process improvement, and business development have resulted in robust organic growth and garnered trust with a global customer base. Net sales rose 19% during the 2022 financial year to INR 8bn while EBITDA gained 97% to INR 2.2bn, according to Livemint.

Bain said it was building a platform in the speciality chemicals contract development and manufacturing space. It plans to support Porus in expanding its capacity, improving process engineering, and building out its talent base in areas such as business development.

“We have high conviction in the industry's growth prospects and see immense potential for expanding the company's market by building or acquiring differentiated chemical capabilities in key sectors,” said Rishi Mandawat, a partner at Bain, said in a statement.

Bain has made at least three investments in the speciality chemicals space in the past few years, including Porus. The PE firm acquired Italy’s Italmatch, which is active in water and plastics additives, lubricants, and flame retardants in 2018. It teamed up with UK-based GP Cinven to acquire Switzerland-headquartered Lonza, a specialist in microbial control agents, in 2021.

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• Topics
• South Asia
• Industrials
• Technology
• Buyouts
• India
• Bain Capital Asia
• manufacturing
• Pharmaceuticals
• Agriculture