Royal DSM, a global science-based company announced today that it has reached an agreement with SRF Ltd. to acquire its engineering plastics business. The acquisition is expected to close in Q3 2019 subject to customary closing conditions. DSM says this acquisition will reinforce its business engineering plastics portfolio in India and make it one of the leading player in the country.

SRF’s engineering plastics specialty materials was founded in 1979 with its main operations located in Pantnagar, India. In 2018, the business reported revenue of $37 million (Rs 259 crore) clocking double-digit growth. The company has customers in the automotive, electrical and electronics industries in India.

The company anticipates that with strong market growth anticipated in the coming years, which it says will be fuelled by increasing domestic demand and a sharper focus on sustainability and weight reduction/metal replacement in the automotive sector, this acquisition will help DSM continue to serve current and future needs of its customers.

SRF’s operations in this sector are will highly complement to DSM’s engineering plastics business in India and will enable DSM to further accelerate its growth without having to invest significantly in fresh capital expenditure.

As of 2018, DSM has about 550 employees, and reported revenue of about 250 million euro (Rs 2,033 crore), a growth of 17 percent compared to 2017.