Chemplast Sanmar to explore biz portfolio rejig, forms panel

Chennai: Chemplast Sanmar, a leading chemical manufacturer, has said it has initiated a strategic review of its business portfolio, including the possibility of a reorganisation and potential mergers and acquisitions (M&A), as the company looks to unlock value and strengthen long-term growth prospects.

The board has constituted a committee comprising three independent directors to examine the company’s strategic priorities with a focus on enhancing long-term value creation for stakeholders, according to S. Ganeshkumar, Managing Director of the company.

“The company may evaluate potential reorganisation and M&A opportunities, and the committee will present its findings to the board for review and appropriate decision-making,” he said during the company’s Q4 FY26 earnings call, adding that external advisers could be engaged to support the exercise.

Explaining the rationale behind the review, N Muralidharan, executive director-finance, said Chemplast’s portfolio currently comprises three distinct businesses — a speciality chemicals segment and two commodity-focused businesses, namely suspension PVC and the vinyls and allied chemicals (VAC) portfolio, which includes caustic soda, chloromethanes and hydrogen peroxide.

While the outlook for the speciality chemicals business remains strong, market conditions for the commodity businesses continue to be volatile and less favourable, he said.

He stressed that the committee has been given a broad mandate rather than a predefined restructuring blueprint. The review will assess the performance of the businesses and determine whether any structural changes are warranted.

“It is too early to prejudge whether any restructuring will eventually take place. The objective is to take a holistic view of the portfolio and examine whether there are more efficient ways of organising the businesses,” he said.

The mandate also includes evaluating inorganic growth opportunities, including potential acquisitions and other M&A transactions.

The company’s loss widened to Rs 280 crore in FY26 from Rs 110 crore in FY25, while its consolidated revenue stood at Rs 4,224 crore (Rs 4,346 crore in FY25).