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Akzo Nobel spurts on inking pact with Atul to set up JV for the production of MCA

29 Apr 2016 Evaluate

Akzo Nobel India is currently trading at Rs. 1327.95, up by 7.75 points or 0.59% from its previous closing of Rs 1320.20 on the BSE.

The scrip opened at Rs. 1321.00 and has touched a high and low of Rs. 1329.95 and Rs. 1320.15 respectively. So far 26 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 1548.70 on 10-Aug-2015 and a 52 week low of Rs. 1201.00 on 24-Aug-2015.

Last one week high and low of the scrip stood at Rs. 1355.00 and Rs. 1305.00 respectively. The current market cap of the company is Rs. 6205.59 crore.

The promoters holding in the company stood at 72.96% while Institutions and Non-Institutions held 10.58% and 16.45% respectively.

AkzoNobel and Atul have signed a Letter of Intent (LoI) to explore the feasibility of setting up a manufacturing joint venture (JV) for the production of monochloroacetic acid (MCA) in India. The two companies are planning to install a world scale MCA plant at Atul’s facility in Gujarat, subject to the necessary regulatory approvals, building on Atul’s status as a leading supplier of crop protection chemicals (which uses MCA as a key raw material) and AkzoNobel’s leading global position in MCA, with plants in the Netherlands, China, Japan and the US.

The intended joint venture will use chlorine and hydrogen manufactured by Atul to produce MCA, taking advantage of Atul’s existing infrastructure and AkzoNobel’s latest eco-friendly hydrogenation technology. The proposed facility will mainly serve the Indian MCA market, as well as meeting the captive requirements of Atul.

AkzoNobel India (previously known as ICI India) is engaged in manufacturing and marketing of paints, speciality chemicals and adhesives.

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