Ahmedabad-based Kiri Dyes and Chemicals Ltd., or KDCL, is planning to acquire the Rs.5,440-crore Germany-based bankrupt DyStar Group, along with its liabilities, for around 100-125 million euros or Rs.698-873 crore, and the negotiations are in an advanced stage, say media reports.
DyStar Group is the global market leader for dyes and textile solutions. It filed for insolvency two months ago for some of its subsidiaries. These included its units in Frankfurt, Leverkusen, Brunsbuttel, Geretsried and Ludwigshafen, according to reports.
A consortium comprising State Bank of India, Bank of India, Exim Bank and Corporation Bank will evaluate the deal for Kiri Dyes, based on the acquisition financing proposal furnished. The deal is expected to be complete by the year-ed.
The BSE-listed company plans to utilize the proceeds of Rs.150 crore raised through qualified institutional placements for acquisition, and intends to raise the remainder through a mix of debt-and-funding through a special-purpose vehicle, sources say.
DyStar reported sales of 800 million euros or Rs.5,440 crore in the last calendar year. Currently owned by Platinum Equity LLP, the company has the parentage of global chemical majors, including Bayer, Mitsubishi Kasei, BASF, Mitsui and Zeneca.
Kiri Dyes expressed its intent to acquire DyStar, and has signed a memorandum of understanding with Platinum Equity Advisors in September, sources add.
The Indian company has also drawn up a restructuring plan for DyStar Group, which includes shifting some operations from Germany to its low-cost production base in India, besides relocating the headquarters of DyStar from Germany to Singapore.
The acquisition, when it materializes, will take Kiri Dyes as one of the integrated textile chemical majors in the world, with over a $1-billion turnover, industry sources point out.
The annual global dyes and intermediates market is estimated at $23 billion, and is expected to grow at 2% per annum. In terms of exports, China ranks sixth globally, while India is sixteenth. The recent withdrawal of tax incentive to dye/dyestuff exporters in China impacted dyestuff exports from that country, and created an opportunity for India, industry- watchers say.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.