Aditya Birla Nuvo to sell carbon black biz to group firm

Aditya Birla Nuvo today said it will sell its carbon black business to another group firm SKI Carbon Black India for Rs 1,451 crore.

The move,aimed at reducing debt,follows a decision of the companys Committee of Directors who felt that it will be extremely challenging for Nuvo to become a global leader as multi-national tyre makers prefer tie-ups with firms which has global spread.

Nuvo,which had clocked Rs 1,983 crore revenue in FY12,has three plants for making carbon black,used in tyre making and is among countrys top three firms in the business. Globally,however,its share is minuscule at 2 per cent.

The company has presence in finance,telecom and textiles business,among other areas.