Ahmedabad-based Kiri Dyes and Chemicals Ltd (KDCL) and Well Prospering Limited (WPL) a wholly owned subsidiary of China based Zhejiang Longsheng Dyestuff Chemicals Company Limited formed a joint-venture company Lonsen Kiri Industries to cater to the international dyestuff market. Over Rs 250 crore have been invested in the plant that will start functioning from Monday and will be 100 per cent export oriented.
“We are putting the best strengths of both the countries together in terms of product technology, economy of scale, modem engineering designs, latest effluent treatment measures, combined sales and marketing,” said managing director of Lonsen-Kiri Industries limited Manish Kiri.
“We are also expecting to significantly increase the market share globally by minimum 1o per cent with exports from India. The joint-venture unit will become world’s second largest reactive dyestuff manufacturing facility in India soon after being commissioned,” Kiri added.
The chemical unit is expected to provide employment to several locals as well as skilled workers and the management is eyeing sales turnover of Rs 500 crore in the first two years. WPL has invested 60 per cent in the plant, while KDCL has invested 40 per cent.
KDCL and WPL had signed a Memorandum of Understanding (MoU) with the government at Vibrant Gujarat Investor Summit in January this year to set up its facilities at Padra taluka of Vadodara. Their plant was formally inaugurated on Sunday by Chief Minister of Gujarat Narendra Modi.
“Through this alliance we are looking at developing a long term relationship with the company and state. The successful completion of project within seven months shows that this state is investor friendly state for foreign investors,” said chairman of joint-venture Zhifeng Xiang who also presented a cheque of Rs 11.11 lakh to Modi for ‘Kanya Kelavani’ project.
“The company will re-cycle and re-use the effluents in order to employ environmental friendly measures. Around 90 per cent of the water used in manufacturing dyes and chemicals will be re-used once its goes through effluent treatment plant,” said Kiri.