Henkel-Chem To Set Up Rs 6cr Plant

Henkel-Chembond Surface Technologies Ltd, the joint venture between Henkel KGaA and Mumbai-based Chembond Chemicals Ltd, will set up a Rs 6-crore plant for making metal chemicals in Maharashtra.

Henkel, the German chemicals major, has a 51 per cent stake in Henkel-Chembond Surface Technologies, with Chembond holding the remaining 49 per cent.

The agreement for the joint venture was signed in March this year and it became operational from April 1, 97, said Vinod D Shah, chairman of Chembond Chemicals.

Meanwhile, Chembond transferred its metal chemicals business to the joint venture for a consideration of Rs 2.29 crore. The company is paying its shareholders a three per cent special dividend out of the metal chemicals business sales proceeds, said Doshi.

 

The joint venture company, which has a Rs one-crore equity base, is currently using Chembonds manufacturing facilities at Tarapore.

The plant produces 20 tonnes of chemicals per day.

Shah said the joint venture company is currently looking for land in a backward area of Maharashtra for setting up the Rs six-crore plant. The plant could come up at Wada near Manore or close to Pune and we expect it to be commissioned in two years, Shah said. The capital outlay for the first phase is Rs three crore and Rs three crore will be spent in the second phase, said company sources.

Chembond Chemicals posted a net profit of Rs 2.56 crore in 1996-97 and declared a 18 per cent dividend. This includes the three per cent dividend in lieu of the one million Deutsche Mark consideration received from Henkel.