The Aditya Birla group has agreed to sell two unlisted downstream palm oil companies in Malaysia for Rs 540 crore (Rs 5.4 billion).
The two companies - Pan Century Edible Oils Sdn Bhd and Pan Century Oleochemicals Sdn Bhd - will be sold to the Malaysian palm oil and property firm IOI Corp Bhd.
Aditya Birla chairman Kumar Mangalam Birla said in a statement, "The group's decision to move out of this business has been driven by its limited presence in the palm value chain, which constrains both growth and competitiveness."
However, Birla said, the group would not quit Malaysia, where it has been operating for nearly 30 years.
"The group is keen on looking at opportunities in Malaysia in its core businesses. It is actively eyeing east Malaysia," he said.
Birla's core businesses include cement, fertilisers, non-ferrous metals, textiles and telecommunications.
IOI, Malaysia's most valuable oil palm plantation firm, said the deal would make it the world's largest vegetable oil-based fatty acid producer.
Pan Century Edible Oils is the world's largest palm oil refinery and palm oil manufacturing company.
It exports products to 53 countries in North America, Central and South America, Western Europe, Central and Eastern Europe, Africa, West Asia, South Asia, South East Asia, East Asia, North East Asia and Oceania.
Pan Century Oleochemicals Sdn Bhd is one of the leading producers of fatty acids and glycerine derived from vegetable sources in Malaysia.
It markets its products to over 400 customers located in over 64 countries in North America, South America, Europe, Japan, South Korea, China, India and West Asia.
