June 3, 2021 โ Alphagary announced that, pending certain customary closing conditions, it will acquire a majority share ownership in Shakun Polymers Private Limited, a privately held and family-owned market leader in the production of compounds for the wire and cable markets in the Indian subcontinent, the Middle East, Southeast Asia and Africa.
A press release said that the transaction represents โan important strategic investment.โ The investment will allow Alphagary to expand its product and regional footprints as Shakun continues to provide next-generation materials designed to meet the high safety and performance standards in Asia and Africaโs markets. Shakun has four manufacturing facilities in India that have a total installed annual capacity of more than 40,000 metric tons. Its compounds are used to make power cables, building wires, telecommunications and fiber optic cables, instrumentation cables and photovoltaic cables.ย Shakunโs product development focus is on halogen-free, flame-retardant compounds and PVC-based compounds for data and power cables, a mix that is a direct complement to Alphagaryโs specialty product offerings that support a connected world. Shakunโs semi-conductive and cross-linkable compounds will also expand Alphagaryโs portfolio, offering a growth platform and meeting customer requirements.
Key members of the Shakun management team will remain with the business, underlining the commitment of both organizations to create added value for customers and stakeholders. โWe are very excited by Alphagaryโs investment in Shakun and the opportunity it creates to deliver on our customersโ requirements,โ said Shakun Joint Managing Director Rakesh Bansal. โI am delighted to be part of a team that will work together to offer a wider portfolio of materials and more efficient supply chains that help us focus on service.โ
โWhile Alphagary has a broad reach from its facilities in the U.S., Europe and Mexico, the addition of Shakunโs market position in Asia and Africa coupled with the teamโs entrepreneurial spirit will enable us to broaden our innovation horizons,โ said Alphagary President Gautam Nivarthy.
Alphagary operates eight facilities in the U.S., U.K., Mexico and Colombia, and has a global sales and distribution network. It is a business of Orbia, which is active in 110 countries, with operations in more than 50. Orbia has five business groups, one of which is Polymer Solutions.
Orbia CEO Sameer Bharadwaj said in the release that while India faces difficulty with the current pandemic, he is confident in the resilience of the Asia-Pacific and African markets and long-term growth coming from these regions. โThis investment provides us with a local presence, a wider scope for future-focused development and a strong customer base for our products and services that help to advance life around the world. We welcome Shakun to the Orbia family and look forward to their immediate contributions to our success together.โ
