Kamasutra From A New Venture

The Rs 18.44 crore (95-96 turnover) JK Chemicals, the Vijaypat Singhania group company, is transferring its condom business to a separate joint venture to be formed with Ansell International, a division of Pacific Dunlop of Australia.

The company issued a notice for the transfer on April 17 and the petition was admitted in the Bombay High Court on April 24. The first hearing is on June 26.

The new company will initially be called JK Condoms and will later be renamed as JK Ansell with Rs 2 crore equity. Ansell will pick up 50 per cent stake in the new company.

JK Chemicals had obtained shareholder approval for the transfer on March 31. JK Chemicals entered into a 50: 50 joint venture with Ansell International, a division of Pacific Dunlop of Australia.

Sources at JK Chemicals said that Rs 3 crore would be spent on modernising and upgrading the Aurangabad plant but, there were no immediate plans to increase capacities.

JK Chemicals is the second largest domestic manufacturer of condoms, with a 25 per cent share of the market. Around 35 per cent of its production is exported to the Middle East, Russia and Eastern Europe. Pacific Dunlop is the second largest condom manufacturer in the world, with a turnover of Rs 20,000 crore last year.

Company sources said the joint venture company would begin exporting to South America and Europe after it obtains accreditation from the concerned agencies.