Kiri Dyes buys DyStar's US ops for $10 mn

Leading dyes manufacturer, Kiri Dyes and Chemicals (KDCL), has acquired the US-based arm of DyStar Group for $10-million, a top company official said.

"Kiri-Dystar is acting as global consolidator of the dyes business, and aggressive cost-cuts coupled with off-shoring of production will result in high profitability across the group," Kiri Dyes and Chemicals Managing Director and Co-Chairman of DyStar Group Manish Kiri told reporters here today.

KDCL, which acquired the global arm of DyStar, DyStar Global in February this year, plans to globally list this company on an overseas stock exchange by FY13. "These funds would be used to further expand the services offered by DyStar," he said.

 

The company also plans to list Lonsen Kiri Chemical Industries, in which KDCL holds a 40 per cent stake, on the Indian stock exchanges in FY 12, Kiri said.

With this acquisition, the overall DyStar Group would have revenues of well over $850-million in FY11 and nearly $1-billion in CY 11, DyStar President (South Asia) Rajesh Balakrishnan said.
   
"This will provide KDCL consolidated revenues of $1 billion in FY11," Kiri said.

The acquisition includes DyStar's US-based production site and warehouse in Reidsville, North Carolina and a warehouse in Southgate, California.

"It is our intention to build a sustainable dyes and chemicals global organisation. For this, we need a powerful sales organisation in North and Central American and maintain retailer connection. The acquisition of DyStar is a part of this strategy," he said.

The company recently raised Rs 240-crore through qualified institutional placement (QIP). "This money will be utilised for investment in manufacturing units and adoption of new and green technology," he said.