Kemrock Ind inks JV with Dutch firm DSM Composite
Reinforced polymer composites manufacturer Kemrock Industries and Exports today said it has entered into a joint venture with Netherlands-based DSM Composite Resins and will invest $25-30 million to set up a plant in Pune.
The JV company, to be known as DSM Kemrock India, is targeting around $50-million revenue from the Indian market by 2015. While DSM will hold a 51% stake in the JV, the balance 49% will remain with Kemrock.
"India is a growing market with an increasing demand for composite resins. The JV will help us strengthen our expertise in composite manufacturing and providing customised solutions to the Indian market as well as Middle East and China," Kemrock Chairman and MD Kalpesh Patel told reporters here.
Composite resins are specialised plastic materials used to build structures in sectors such as aerospace, defence, interiors of the Railways, infrastructure and automobile.
As per the agreement, DSM will focus on the supply of innovative specialised composite resin solutions, while BSE-listed Kemrock will concentrate on the production of high-end composite parts from its Pune plant.
"The Pune plant will have a capacity of manufacturing 25,000 tonne of composite materials per annum in the first phase. However, the numbers are conservative as it can go up further keeping in view the growth of this market at 20-25%," Patel said.
In addition to the JV, DSM will establish its own local marketing and sales company for composite resins to serve the Indian domestic market.
The $10-billion DSM Composite that started its operations in India in 2001, currently earns around $250 million from the Indian market and expects the revenues to grow 2-3 times over the next five years.
"India is a very important market for us after China in the composite resins segment. Wind turbines, infrastructure and automobile spaces are the most upcoming sectors. We hope that our revenues from the Indian market will grow 2-3 times by 2015," DSM Composite President Micheal Effing said.