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Primo Chemicals to Acquire Flow Tech Chemicals for ₹55.16 Crore, Become Wholly-Owned

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AuthorVihaan Mehta|Published at:
Primo Chemicals to Acquire Flow Tech Chemicals for ₹55.16 Crore, Become Wholly-Owned

Primo Chemicals is acquiring the remaining 51% stake in Flow Tech Chemicals for ₹55.16 crore. This move aims to gain full operational control, improve synergies, and optimize plant capacity. Flow Tech shows strong revenue and profit growth.

Primo Chemicals to Fully Acquire Flow Tech Chemicals

Primo Chemicals Ltd is set to acquire the remaining 51% equity stake in Flow Tech Chemicals Private Limited for ₹55.16 crore. This strategic move will make Flow Tech a wholly-owned subsidiary of Primo Chemicals.

What Just Happened

Primo Chemicals will purchase the remaining 51% of Flow Tech Chemicals at ₹1,418.20 per share, totaling ₹55.16 crore. This acquisition aims to bring Flow Tech fully under Primo's operational control, eliminate related party transactions, and enhance business synergies, particularly concerning their shared chlor-alkali plant.

Why This Matters

This consolidation is expected to improve operational efficiency, facilitate better chlorine evacuation, and optimize the utilization of their chlor-alkali plant capacity. For investors, it signifies a move towards greater control and potential for improved profitability through integrated operations.

The Backstory

Primo Chemicals and Flow Tech Chemicals have historically shared a chlor-alkali plant setup. The current acquisition is a step towards consolidating operations and realizing the full potential of their integrated business model. Flow Tech has demonstrated consistent growth over the past three financial years.

Financial Snapshot of Flow Tech

  • FY 2026: Revenue ₹342.42 crore, EBITDA ₹20.19 crore, PAT ₹9.80 crore.
  • FY 2025: Revenue ₹275.44 crore, EBITDA ₹10.72 crore, PAT ₹2.55 crore.
  • FY 2024: Revenue ₹228.78 crore, EBITDA ₹7.87 crore, PAT ₹1.02 crore.

What Changes Now

Upon completion, Primo Chemicals will have complete operational and financial control over Flow Tech. This integration is expected to streamline business processes and potentially boost overall financial performance. The acquisition is targeted for completion by March 31, 2027.

Board and Management Updates

The company is also seeking shareholder approval for the appointment of two Non-Executive Independent Directors, Shri Dibakar Sarkar and Shri Sobhag Mal Jain, effective May 5, 2026, for five-year terms. Approvals are also sought for the remuneration of Managing Director Shri Naveen Chopra and Executive Director Shri Jatin Dahiya.

Reader Takeaway: Consolidation enhances operational control and synergies, while robust profit growth in Flow Tech signals potential.

Disclaimer:This article is published for informational purposes only. While reasonable efforts are made to ensure accuracy, completeness, and timeliness, readers are encouraged to independently verify information before making any decisions based on the content. The views and information presented are subject to editorial review and may be updated without notice.