Tata Chemicals to acquire Singapore-based Novabay for ₹260 crore
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Tata Chemicals Ltd on Friday announced it will acquire Singapore-based Novabay Pte., a manufacturer of premium-grade sodium bicarbonate, for 25 million euros (around ₹260 crore) to strengthen its presence in high-value, non-cyclical product segments.
The acquisition will be executed through its subsidiary, Tata Chemicals International Pte., which has signed a share purchase agreement to acquire 100% equity in Novabay at an enterprise value of 25 million euros, subject to net debt, net working capital, and other customary adjustments, the company said in a stock exchange filing.
No regulatory approvals are required, and the transaction is expected to be completed by March 2026.
Novabay, a wholly owned subsidiary of France-based Novacarb, manufactures and sells premium-grade sodium bicarbonate catering to pharmaceutical, food, and personal care sectors across Europe, the Americas, Oceania, Asia, the Middle East, and ASEAN markets. Incorporated in November 2015, the company reported a turnover of 29.49 million Singapore dollars in calendar year 2024.
The company operates a fully automated facility with key cGMP and API-related certifications. Its current production capacity stands at around 60,000 tonnes, with potential expansion to 100,000 tonnes.
“Novabay’s focus on premium-grade sodium bicarbonate aligns seamlessly with Tata Chemicals’ strategy to expand its presence in high-value, non-cyclical product segments,” said Managing Director and CEO Ramakrishnan Mukundan. He added that the acquisition would strengthen the company’s capabilities in the specialty bicarbonate market and enhance its ability to serve premium customer requirements.
According to Tata Chemicals, demand for premium-grade sodium bicarbonate remains steady due to its wide usage in healthcare, personal care, and food applications. Factors such as rising haemodialysis needs, improved access to medical care, and growing consumption in emerging markets are driving growth in this segment.
Earlier this week, Tata Chemicals raised ₹1,500 crore through the private placement of non-convertible debentures. The company’s shares ended 1.7% higher at ₹761.2 on the BSE ahead of the announcement, compared with a 0.5% rise in the Sensex, though the stock is down about 27% so far this year.