Vishnu Chemicals Limited, a global leader in specialty chemicals manufacturing, has announced that it has entered into a definitive agreement to acquire a significant Chrome Mining Complex from the Volclay Group of Companies in South Africa. This acquisition will be made through Vishnu's wholly owned subsidiary, Vishnu South Africa (Pty) Limited (Vishnu SA), in a combined share and asset deal.

Vishnu has consistently focused on building an agile manufacturing business, evolving to meet market demands through both organic and inorganic growth strategies. This acquisition reflects that approach, providing the company with a steady and reliable supply of Chrome Ore, a critical raw material for its existing and future production requirements. The acquisition will also help Vishnu diversify its resource base and reduce supply chain risks, securing long-term material availability for its operations.

The Chrome Mining Complex covers about 1,800 hectares and holds an estimated 10 million tonnes of Chrome Ore resources, offering a long-term life. In addition, the complex includes a fully operational Chrome Processing Plant and the necessary mining infrastructure. This gives Vishnu immediate access to advanced mining and processing capabilities, enabling efficient extraction and processing of Chrome Ore for its manufacturing needs.

South Africa holds the world’s largest reserves of Chrome Ore, making it a crucial player in the global supply chain. The region’s chrome ore is particularly well-suited to Vishnu’s production needs, and the country’s mining industry benefits from a skilled workforce, a stable business environment, and well-developed infrastructure that supports sustainable mining operations. South Africa’s robust logistics network also ensures efficient transportation of materials to global markets, a critical advantage for Vishnu as it expands its operations.

The acquisition is expected to deliver both strategic and financial benefits, including a stable and continuous supply of vital raw materials, an integrated business model from sourcing to manufacturing, and a more cost-effective expansion compared to launching a greenfield project. The deal also aligns with Vishnu’s strategy of strengthening its supply chain resilience, providing the company with a competitive edge in the global market.

Under the terms of the deal, Vishnu SA will acquire a 74% stake in the mining entity and full ownership of the Chrome Processing Plant, along with related mining and infrastructure assets. In line with local regulations, foreign companies are permitted to hold up to 74% of mining operations in South Africa. The transaction, which is valued at up to US$ 10 million (approximately Rs. 84 crores), will be funded using Vishnu Chemicals' existing cash reserves and internal resources.

Currently on "Care & Maintenance," the Chrome Mining Complex will be revitalized post-acquisition. Vishnu plans to leverage its expertise in resource management and beneficiation to optimize production at the mine and processing plant, unlocking its full potential. The acquisition is expected to close within 12 months, pending regulatory approvals and customary closing conditions. Vishnu intends to accelerate the development of this asset, maximizing its contribution to the company’s long-term growth strategy.