Ganesh Benzoplast has signed definitive agreements to sell its liquid storage and rail logistics businesses to Cisternina Logistics Private Limited, a KKR-backed entity, for ₹1,154 crore. The Board of Directors approved the transaction on September 29, 2026, based on the Audit Committee's recommendation.

The transaction involves the divestiture of two business verticals: the liquid storage tank business at terminals located at Jawaharlal Nehru Port (JNP), Goa Port, and Cochin Port, and the shareholding in ILSL Rail Logistics Private Limited, which operates the rail logistics business in Daund. The sale will be executed on a slump sale basis.

Deal overview

The completion of the transaction is subject to necessary regulatory and shareholders' approvals and is expected to occur in tranches over the next 18-24 months. Cisternina Logistics Private Limited (CLPL) was founded by infrastructure veterans Amit Saboo, Kartik Deuskar, and Puneet Kedia. Funds managed and advised by KKR will make a majority investment in CLPL.

Financial contribution of divested units

According to disclosures under Regulation 30 of the SEBI Listing Regulations, the units being sold represented a significant portion of Ganesh Benzoplast's consolidated financials for the fiscal year ended March 31, 2026. The Liquid Storage Tank Undertaking contributed 39.29% of total revenue and 41.72% of net worth. The Rail Logistics Undertaking contributed 6.73% of revenue and 3.18% of net worth.

Combined, these two undertakings accounted for approximately 46% of the company's consolidated revenue and over 44% of its net worth in FY26. The consideration for the sale is subject to adjustments based on conditions and milestones set out in the definitive documents.

Strategic use of proceeds

Ganesh Benzoplast stated that it will utilize the proceeds from the sale to grow and expand its capacity for manufacturing chemicals, food preservatives, and lube oil additives. The company also plans to execute higher value projects in its Engineering, Procurement, and Construction (EPC) business. Additionally, the company will consider enhancement of shareholder value through corporate actions such as buybacks, subject to regulatory provisions.

Additional EPC opportunity

In addition to the asset sale, CLPL has entered into definitive documents to engage Ganesh Benzoplast for EPC services related to the expansion, construction, and building of pipelines and tanks at the JNP facility. These EPC related services are expected to generate additional revenue of approximately ₹280 crore (excluding taxes) for Ganesh Benzoplast over the next 18-24 months.

Management commentary

Rishi Pilani, Chairman and Managing Director of Ganesh Benzoplast, noted that the company has built a strong liquid storage and logistics business over several decades. He stated that Cisternina and KKR are well positioned to support its next phase of growth. The management remains focused on growing the chemical business by adding new product lines and increasing the scale of the EPC business.

Ravi Pilani, President of the Chemical Manufacturing Division, described the transaction as a significant milestone. He added that the division will focus on building new Make in India opportunities along with trading chemicals to deliver significant growth over the next decade.

Ganesh Benzoplast has scheduled its 39th Annual General Meeting (AGM) for Wednesday, September 30, 2026 at 3:00 pm. The meeting will be conducted via video conferencing or other audio-visual means. Shareholders can vote electronically through CDSL.

The remote e-voting period runs from Sunday, September 27, 2026 at 10:00 am to Tuesday, September 29, 2026 at 5:00 pm. The cut-off date for determining eligible members is September 23, 2026. The register of members and share transfer books will remain closed from September 24, 2026 to September 30, 2026 (both days inclusive).

Director Reappointment

The AGM agenda includes the reappointment of Mr. Rishi Pilani (DIN: 00901627) as a Director. He retires by rotation at this meeting and, being eligible, has offered himself for reappointment. Mr. Pilani serves as the Chairman & Managing Director.

During FY25-26, Mr. Pilani received a remuneration of ₹16.39 million. He attended all four board meetings held during the financial year. His current tenure as Chairman & Managing Director runs from September 29, 2024, to September 28, 2029.

Auditor Appointment

The Board of Directors appointed Samria Kabra & Associates as statutory auditor for a five-year term during its meeting on September 2, 2026. This replaces retiring auditors Mittal & Associates. The new firm, holding Firm Registration No. 109043W, will serve from the conclusion of the 39th AGM until the 44th AGM, subject to shareholder approval.

Samria Kabra & Associates was established in 1970 and is registered with the Institute of Chartered Accountants of India. It holds a valid Peer Review certificate and is led by senior partners with over five decades of experience. There is no disclosed relationship between the new auditors and company directors.

Cost Auditor Ratification

Shareholders are also asked to ratify the remuneration of S K Agarwal & Associates (Firm Reg. No. 100322) as Cost Auditors for FY26-27. The approved remuneration is ₹1,75,000 plus applicable taxes and reimbursement of actual travel and out-of-pocket expenses.

Key Dates and Details

Promoter Classification Update

The board approved the automatic classification of Mr. Ravi Pilani as a promoter under Regulation 31A(6) of the SEBI Listing Regulations. This follows an earlier disclosure on August 28, 2026, regarding inter-se transfer of shares among promoters and immediate relatives pursuant to Regulation 10(6) of the SEBI SAST Regulations.

Ekta Dhanda, Company Secretary, digitally signed the intimation on September 7, 2026. The notice was dispatched to both the Bombay Stock Exchange and the National Stock Exchange of India Limited.