SRF Ltd, the domestic market leader in technical textiles, refrigerant gases and a preferred supplier of other fluorochemical products and polyester films, will acquire the engineering plastic business and industrial yarn business of SRF Polymers (SRFP) for Rs 151.6 crore. The proposal was approved by the board of directors of the company at its meeting held on 12 December, the company said in a filing with the Bombay Stock Exchange (BSE). The effective date for the transaction shall be 1 January 2009. Earlier in October 2008, the board of SRFP had informed the stock exchange about its decision to seek approval of the shareholders through postal ballot for disposing of the two businesses.

With this business acquisition, SRF's turnover will increase from nearly Rs 1,700 crore to about Rs 2,000 crore, and will enable further consolidation through greater synergies between the businesses. SRF's engineering plastics business has been certified with QS9000 and ISO 14001 certifications.

The SRF Polymers stock was trading at Rs101.25, up Rs0.30 on the Bombay Stock Exchange. The SRF stock was trading at Rs76.50, up Rs2.15 or 2.89 per cent.