German based chemical manufacturer, Lanxess is all set to acquire Gwalior Chemicals Industries (GCIL) for Rs. 536 crore subjected to the approval of shareholders. The deal is likely to be completed by September 30.

GCIL Chairman and Managing director, Aswini Kumar Kothari said that the firm would use these funds for their business to further expand in the power generation and acquire specialty in chemical domains. Assuring stakeholders of good returns, he said, "We think we have managed to earn a lucrative valuation for the company.Shareholders will gain from the cash distribution and investments in high growth businesses."

GCIL, having around 400 employees, caters to the agrochemicals, pharmaceuticals, flavor and fragrance segment, supplying benzyl and sulphur chloride from its various facilities located at Nagda in Madhya Pradesh and Ankleshwar in Gujarat. The firm is planning to distribute Rs. 100 crore to its shareholders either paying dividend or payback of shares.

Lanxess Chairman Axel C. Heitman said that it would be the first acquisition by the firm in India that would help to complement its chemical portfolio. The company would increase expenditure in R&D and set up a new facility for ion exchange resins in India.

He further added, "Today's announcement is a continuation of the initiatives that have been taken to grow the business here in India."