Sudarshan Chemical Industries has appointed Amit Deshpande as General Counsel and Senior Management Personnel effective September 21, 2026. The Board of Directors approved the move based on the Nomination and Remuneration Committee’s recommendation.

Deshpande will report directly to the Chairman and Managing Director. The appointment aligns with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Professional Background

Deshpande brings over 24 years of experience in company law, SEBI regulations, mergers and acquisitions, and statutory compliance. He holds a commerce degree from Symbiosis and a law degree from ILS Law College, Pune. He is also an Associate Member of the Institute of Company Secretaries of India.

His career includes significant leadership roles across major Indian corporations:

• Sterlite Technologies Limited: Served as General Counsel and Company Secretary for nearly 15 years. He played a central role in strategic transformations, including mergers, demergers, and capital-raising initiatives.
• LegaLogic Consulting: Previously associated as Partner M&A and Capital Markets.
• Earlier Roles: Held leadership positions at Tata Auto Comp Limited, Kirloskar Oil Engines Limited, and Vishay Components (India) Private Limited.

Governance Focus

During his tenure at Sterlite Technologies, Deshpande was instrumental in strengthening governance architecture and enhancing board processes. His expertise covers enterprise risk management, intellectual property, FEMA, and legal due diligence.

Sudarshan Chemical Industries has signed a definitive agreement to sell its entire stake in VP4 Frankfurt GmbH to Celanese US Holdings LLC for EUR 76.5 million. The transaction, finalized on August 31, 2026, marks a strategic step toward sharpening the company’s focus on its core pigment business and strengthening its balance sheet.

VP4 Frankfurt, a wholly-owned subsidiary of Sudarshan Germany Horizons GmbH, operates primarily as a tolling manufacturer of intermediates. Only a small portion of its output is consumed captive by Sudarshan Germany Horizons. The buyer, Celanese US Holdings LLC, is part of Celanese Corporation, a global chemical and specialty materials company, and is not related to the promoter group.

Transaction Details

The sale is structured as a share purchase and transfer agreement. Completion is subject to the fulfillment of customary closing conditions and other precedents, with an expected closure in approximately 2-3 months. The transaction falls outside the purview of related-party transactions and is not part of any scheme of arrangement. Consequently, Regulation 37A of the SEBI Listing Regulations, 2015, is not applicable.

Strategic Rationale

VP4 Frankfurt became part of Sudarshan through its acquisition of the Heubach Group. It serves Nutrinova, an affiliate of Celanese Corporation and Mitsui & Co. Japan, as its principal customer. Diketene, a key intermediate produced by VP4, is important for functional food ingredients such as the artificial sweetener acesulfame-K (Sunett). This makes the asset a stronger strategic fit with Celanese and Nutrinova, a producer of additives for the food industry.

The VP4 facility primarily serves Nutrinova's food additives business, with 90-95% of production sold to Nutrinova. Only 5% is used by Sudarshan for captive consumption in Arylides (Azo yellow pigment) production, while 2-3% is sold to other parties. Post-closing, Celanese will acquire and operate the VP4 plant for a transitional period before ownership passes to Nutrinova. Nutrinova will continue to supply Sudarshan with the required quantity of Diketene under a long-term supply contract.

"The sale of VP4 Frankfurt is a strategic step in sharpening our focus. Pigments and colorants are where we create the most value for our customers. VP4 is a well-run business with a strong team, and it now moves to the company it already serves. That is the right outcome for the asset, for its employees, and for Sudarshan," said Rajesh Rathi, Chairman & Managing Director, Sudarshan Chemical Industries Limited.

Financial Impact

As of March 31, 2026, VP4 Frankfurt contributed EUR 15.7 million in revenue for FY26, accounting for 1.64% of Sudarshan Chemical Industries’ consolidated revenue and 6.71% of its standalone revenue. The net worth contribution of the unit stood at EUR 5.7 million. In Q1FY27, the unit generated EUR 4.1 million in revenue and EUR 1.3 million in EBITDA.

The proceeds from the sale will be primarily utilized for the prepayment of acquisition loans. This move is expected to further strengthen the company’s balance sheet, positioning Sudarshan Chemical as a zero net debt or positive cash company.

What the Numbers Show

The consideration of EUR 76.5 million represents a significant premium over the subsidiary’s net worth contribution of EUR 5.7 million as of March 31, 2026. This valuation gap suggests the price reflects future cash flow expectations or strategic value to the buyer rather than just book value. Additionally, while the unit contributes nearly double its weight to standalone revenue (6.71%) compared to consolidated revenue (1.64%), its small share of total consolidated output indicates limited operational dependency for the broader group. The divestment allows Sudarshan to reduce debt while maintaining supply continuity through Nutrinova, aligning operational focus with core pigment manufacturing.

The company disclosed this transaction under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was filed with BSE Limited and the National Stock Exchange of India Limited on September 1, 2026.