With total sales of EUR 1.5 billion generated by over 30 production and sales units in Europe, Asia and America, RadiciGroup closed its 2021 financial year with positive results, despite the difficulties due to the lingering effects of the pandemic and the steep increase in the cost of raw materials and energy, especially during the latter part of the year.
The company continued to pursue its strategy of focusing on the core businesses considered to be strategic and synergistic, such as polyamide chemicals, engineering polymers and advanced textile solutions, while, at the same time, introducing new products, such as a line of personal protective equipment for medical and industrial use. EBITDA reached € 268 million, and net income for 2021 was € 150 million.
The increase in sales came about more as a result of the ‘price increase’ effect caused by a sharp jump in the cost of raw materials and energy.
The year 2022 started off with the entire industrial world facing great difficulties, created by the uncertainties related to the precarious international geopolitical situation. This new state of affairs prevents RadiciGroup, Grandino/Italy, from forecasting cost trends. Despite this situation, RadiciGroup considers it essential to continue making investments.
Indeed, the Group has moved forward, according to plan, with the acquisition of the Engineering Plastics business of Ester Industries Ltd., Gurgaon/India, a company engaged in the production of engineering polymers and listed on the Bombay Stock Exchange. RadiciGroup’s € 35 million investment in this transaction furthers the internationalization strategy of its High Performance Polymers business area.
In exchange for this significant investment, Ester Industries will transfer its main assets, including the newly built industrial area in Halol (Gujarat), compound lines, R&D laboratories, customer/supplier contracts and its leading brand Estoplast, which includes different types of compounds used primarily in the electrical and electronics market.
This transaction allows RadiciGroup to further strengthen its presence in the Indian market. The production plant in India, together with the one under construction in China, is an additional building block to enlarge the company’s footprint on the Asian continent and realize its growth potential.
RadiciGroup - through its High Performance Polymers business area – has been in India since 2006 with its sales company Radici Plastics India Pvt. Ltd. As a result of this acquisition, the company aims to achieve total annual sales in the Indian market of more than € 50 million, along with new development and growth opportunities for the entire High Performance Polymers business area.