Meghmani Organics (MOL) has inked pact with Japan’s Mitsui & Company and Kaneka Corporation for manufacture of chlorinated polyvinyl chloride (CPVC) at Dahej in Bharuch district. The company has set up a joint venture company - Trience Specialty Chemicals with a total investment of $120 million.
MOL will have a 39% investment ratio in the venture while Kaneka and Mitsui will have 41% and 20%, respectively. The tripartite agreement was signed on October 6 to conduct feasibility study of the project, aimed at development of CPVC business in India.
The joint venture company will manufacture 20,000 tonnes of CPVC annually, scalable later. It is expected to start production in 2014. While Kaneka will provide technology and Meghmani land and local management as the operational partner in the joint venture, Mitsui will handle raw material PVC procurement and play a key role in CPVC sales and marketing in Indian market, now growing at 40% rate annually.
MOL is a manufacturer of agrichemicals, pigment and other specialty chemical products. It operates an electrolysis plant, Meghmani Finechem, at Dahej. The caustic chlorine produced by it will be procured by Trience for its CPVC production.