Graphite International BV signs to acquire 46% stake in General Graphene Corporation for US$ 18.6 million

Deepthi | Myequity news | Date : 03-09-2018 11:30:00 IST

Graphite India Limited, the largest Indian graphite electrode producer, through its wholly owned subsidiary in Netherlands, Graphite International BV has signed a definitive agreement for investment upto US$ 18.6 million in cash in General Graphene Corporation. This investment would constitute approximately 46% stake in General Graphene and is aligned to the Company’s core business segment of Carbon and Graphite.

General Graphene, a US based unlisted company located in Knoxville (Tennessee), has developed a breakthrough proprietary technology which would allow them to produce large area, low cost graphene sheets industrial volumes for commercial applications. The investment will be made in multiple tranches over 2 to 3 years, based on the achievement of agreed milestones in the process of commercial production of graphene sheets.

Commenting on the development, Mr. K K Bangur, Chairman of Graphite India said:“We are extremely pleased to partner with General Graphene in the development and commercialization of this disruptive and high end technology product. Graphene, with its unique properties of being the strongest, thinnest and lightest material known, is likely to open up new opportunities in high tech applications further driving efficiency and optimising costs. Graphite India’s investment in General Graphene is in line with its longstanding strategy of focusing on high end technologies. This initiative is expected to deliver meaningful growth in the long term once commercialization of the product is achieved and will result in enhanced value creation for all the stakeholders”.

About Graphite India Limited:

Graphite India Limited is the largest Indian producer of graphite electrodes and one of the largest globally, by total capacity. Its manufacturing capacity of 98,000 tonnes per annum is spread across four plants at Durgapur (54,000 MT), Bangalore (13,000 MT), and Nashik (13,000 MT) in India and Nurnberg in Germany (18,000 MT). The Company has over 50 years of technical expertise in the industry. Exports accounted for 37% of the total revenues in FY2018. Graphite India manufactures a full range of graphite electrodes but is focused on the higher margin, large diameter, ultra- high power (“UHP”) electrodes. The Company is well poised in the global graphite electrode industry through its quality, scale of operations and low cost production base. Graphite India's competitive edge was particularly evident during the last decade, when low prices for graphite electrodes resulted in many of the leading players generating losses, but the Company however remained consistently profitable and declared dividends. With the recent structural changes in the industry, Graphite India is well positioned to capitalize on the market opportunities and remain one of the leading graphite electrode manufacturers globally.


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