UPL in the year 2020 had submitted a resolution plan to National Company Law Tribunal (“NCLT”) under Insolvency and Bankruptcy Code for revival of Kudos Chemie Limited, which was recently approved by The National Company Law Tribunal, Chandigarh Bench, Chandigarh. As per the resolution plan, UPL Limited would acquire entire holding of Kudos.
The Company has incorporated a wholly owned subsidiary in the name of UPL Speciality Chemicals Limited (“USCL”) which has acquired 100% holding in Kudos.
Kudos did not carry out operations in last more than 5 years. Corporation Insolvency Resolution Process was initiated in 2018 against Kudos by consortium of financial creditors. Kudos manufactures speciality chemicals used as beverage and pharmaceutical ingredients and has manufacturing facility near Chandigarh.
As per the resolution plan approved by NCLT, the Company is required to invest Rs.237 crore in Kudos over a period of 2 years. Kudos acquisition helps UPL to offer various valueadded products to its customers having synergy with its existing business.