Foundation stone laid for dye mfg facility near Vadodara

Mumbai: Kiri Dyes & Chemicals (KDCL) and Well Prospering (WPL), a group company of the world's largest dyes manufacturing company Zhejiang Longsheng Group has put a foundation stone for setting up the world's second largest dyes manufacturing facility at Dudhwada near Vadodara.

The facility will have an initial production capacity of 50,000 metric tons a year and will be increased up to 60,000 metric tons annually in due course.

Both the JV partners have floated a joint venture company called Lonsen Kiri Chemical Industries Ltd. (LKCIL). This greenfield unit is slated to be operational by April 2009.

'We expecting a topline of Rs4 bn and bottomline of Rs350 to Rs400mn from this JV plant in the first year of operation. KDCL will provide key raw materials to the JV company from its existing intermediates facility based at Dudhwada, near Vadodara,' said Manish Kiri, MD of Lousen Kiri Chemical.

'We are confident of the successful joint venture investment in Lonsen Kiri that we have done for which the first milestone has been accomplished today. We are expecting to significantly increase the market share globally by minimum 10% with exports from India. Our facility will be 100% export oriented unit having main focus to serve market outside India,' said by Zhifeng Xiang, Chairman of Lonsen Kiri Chemical.

'It is my pleasure to announce that at Lonsen-kiri, we are putting the best strengths of both the countries together in terms of product technology economy of scale, modern engineering designs, latest effluent treatment measures, combined sales and marketing, etc. We are proud to build world's second largest dyestuff manufacturing facility in India,' said Kiri.