Tata Chemicals to Buy Novabay For Rs 260 Crore; Tap Non-Cyclical Products

Tata Chemicals Ltd, through its wholly owned subsidiary Tata Chemicals International Pte, has signed a share purchase agreement to acquire 100% equity in Singapore-based Novabay Pte for an enterprise value of 25 million euros, equivalent to approximately Rs 260 crore. The deal, subject to adjustments for net debt, working capital, and other customary terms, targets Novabay, a manufacturer of premium-grade sodium bicarbonate and a subsidiary of France's Novacarb.

Novabay, incorporated in 2015, operates a fully automated facility with a current production capacity of 60,000 tonnes per annum, expandable to 100,000 tonnes. The company reported a turnover of 29.49 million Singapore dollars in calendar year 2024 and holds key certifications, including cGMP and API, serving premium markets in pharmaceuticals, food, and personal care across Europe, the Americas, Oceania, Asia, the Middle East, and ASEAN regions.

Tata Chemicals Managing Director and CEO Ramakrishnan Mukundan stated that the acquisition aligns with the company's strategy to expand in high-value, non-cyclical segments. "Novabay’s focus on premium-grade sodium bicarbonate aligns seamlessly with TCL’s strategy to expand its presence in high-value, non-cyclical product segments. This acquisition strengthens TCL’s capabilities in the speciality bicarb market and enhances our ability to serve premium customer requirements," he said. The transaction requires no governmental or regulatory approvals and is expected to close by March 2026.

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This move allows Tata Chemicals to bolster its portfolio in steady-demand sectors like healthcare and personal care, driven by growing needs in haemodialysis and emerging markets. Tata Chemicals, part of the Tata Group, recently raised Rs 1,500 crore via non-convertible debentures, reflecting ongoing efforts to fund growth initiatives amid a challenging year for its stock performance.

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