By IANS,
Ahmedabad : The city-based Kiri Dyes and Chemicals Limited (KDCL) is forging a second joint venture with the Lonsen group of China to make dyestuff products.
The JV will be with the Hong Kong-based Well Prospering Limited, one of the 13 subsidiaries of the Lonsen group.
The new JV will set up a plant at Dudhwada village near Vadodara, about 110 km from Ahmedabad, the company stated in a communication to the Bombay Stock Exchange Monday.
Early this year, the company promoted its first joint venture with Lonsen group on a 60:40 basis. The JV unit, which is being located at Padra, close to Vadodara, is scheduled to produce 20,000 tonnes of reactive dyes – expected to be enhanced to 50,000 tonnes – a year.
Boom conditions in the chemical industry, both at home and abroad, have enabled KDCL to record impressive earnings from sales and a quantum jump in net profit after tax.
The company, which went public in April this year, has recommended a maiden dividend of 15 percent. KDCL is listed on both the BSE and the NSE.
The company’s press release said the net sales income from operations for the year ended March 31 grew by an impressive 66 percent at Rs.2,216 million compared to Rs.1,334 million during 2006-07. The net profit at Rs.200 million was an impressive 139 percent growth compared to Rs.84 million during 2006-07.
It is currently implementing a backward integration project for manufacturing sulphuric acid.