Mitsubishi sells India petrochemical business to Purnendu Chatterjee

The Dollar Business Bureau

Mitsubishi Chemical Holdings Corp announced it will transfer controlling equity interest of its Purified Terephthalic Acid (PTA) manufacturing subsidiary to India.
Purnendu Chatterjee, Founder and Chairman of The Chatterjee Group (TCG), has acquired MCC’S petrochemical facility in India. The Japanese conglomerate of late has been trying to exit its petrochemical businesses in India and China.
"Mitsubishi Chemical Holdings Corp, the holding company of Mitsubishi Chemical Corp in its Board meeting in Tokyo passed a resolution to transfer controlling equity interest of MCC's PTA manufacturing subsidiary in India,” the company said in a statement.
Mitsubishi had set up its India facility to manufacture purified terephthalic acid (PTA) in West Bengal. PTA is used to make industrial grade polyester resins, and PET bottles, polyester staple fibre, and polyester filament yarns.
“The transfer of equity interest in MCC's China PTA and Poly Tetramethylene Ether Glycol businesses being carried out by Ningbo Mitsubishi Chemical Co and MCC Advanced Polymers Ningbo Co to another company have also been authorised," MCC said in its release.
The West Bengal government had 5% stake in MCC PTA through a state investment entity. But before making the transfer, MCC had expanded the equity base to 99.4%.
“After the deal with Chatterjee, Mitsubishi would retain 9% stake in MMC PTA with 91% sold to the new owner,” said a detailed statement.
MCC PTA suffered a loss of Rs.290 crore in the financial year 2015-16, which was incidentally up Rs.86 crore over the previous year.
"Owing to severe market conditions MCPI became a sick unit in 2013 and has subsequently been referred to BIFR. The main reason for the prolonged slowdown in PTA business, as has been stated above, is the sudden build up of huge overcapacity in China since 2011 and resultant dumping in Indian market causing grave injury to domestic producers," it said.