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Sudarshan Chemical divests VP4 Frankfurt to Celanese
Sudarshan Chemical Industries has announced the sale of its subsidiary VP4 Frankfurt to Celanese Corporation, a move aimed at concentrating resources on its core pigments and colorants business. The divestiture follows Sudarshan’s earlier acquisition of the Heubach Group, through which it had taken on the Frankfurt-based intermediates producer.
VP4 Frankfurt, a step-down subsidiary of Sudarshan Chemical Industries, is to be sold to Celanese Corporation of the USA. The Indian pigments manufacturer announced the transaction as a strategic step to refocus on its core business of pigments and colorants. VP4 Frankfurt operates primarily as a tolling operator, producing intermediates such as Diketene for Nutrinova, an affiliate of both Celanese Corporation and Mitsui & Co., Japan. Nutrinova is a producer of additives for the food industry, including sweeteners, and is the principal customer of VP4 Frankfurt.
Sudarshan had acquired VP4 Frankfurt as part of its broader takeover of the Heubach Group. Only a small share of VP4 Frankfurt’s output was directed towards Sudarshan for captive consumption, with the bulk of production serving Nutrinova. Given that Diketene is an important intermediate for functional food ingredients, the asset is considered a stronger strategic fit with Celanese and Nutrinova than with a pigments-focused manufacturer.
Divestiture aligns VP4 Frankfurt with its principal customer
Following the completion of the transaction, Nutrinova will continue to supply Sudarshan with the materials it requires, ensuring continuity of supply for the pigments producer. The sale thus resolves an operational misalignment, bringing VP4 Frankfurt under the ownership of the company it already predominantly serves.
Rajesh Rathi, chairman and managing director of Sudarshan Chemical Industries, commented on the rationale behind the decision: “The sale of VP4 Frankfurt is a strategic step in sharpening our focus. Pigments and colorants are where we create the most value for our customers. VP4 is a well-run business with a strong team, and it now moves to the company it already serves. That is the right outcome for the asset, for its employees, and for Sudarshan.”
