Castor oil producer Jayant Agro Organics today announced a joint venture with France-based chemical firm Arkema by divesting 25% stake in its subsidiary for an undisclosed amount.
In a filing to the BSE, Jayant Agro said it has entered into an agreement with Arkema to form a strategic joint venture through its subsidiary Ihsedu Agrochem Pvt Ltd (Ihsedu).
"Pursuant to the joint venture, Arkema will acquire around 25% equity stake in Ihsedu," the filing said, adding that the JV would focus on manufacturing various industrial and speciality grades of castor oil.
Separately, Arkema said that it has signed a joint venture agreement with Jayant Agro whereby the French firm "will acquire a stake of some 25% in Ihsedu Agrochem".
"This joint venture aims to develop castor oil production in order to provide Arkema with long-term secure and competitive access to this strategic raw material for the manufacture of its biosourced polyamides," Arkema said in a statement posted on its website.
This JV is in line with Arkema's strategy to secure the supply of a key raw material in order to support the development of its bio-sourced speciality polyamides in fast growing applications, such as innovative materials for lighter vehicles and oil & gas extraction, the French firm said.
