Navin Fluorine International (NFIL) and Gujarat Fluorochemicals (GFL) have executed a joint venture agreement (JVA) with GMDC. The primary objective of the joint venture is technological up gradation of the existing plant of GMDC at Kadipani in Gujarat, which will be transferred to the new joint venture company (JVC) and setting up of new plant for maximum production of acid grade fluorspar using the ore to be supplied from the mines of GMDC and metallurgical grade fluorspar as an associated by product.
The activities of the joint venture will be carried out through a new company to be incorporated by all the three parties. The initial paid up capital of JVC will be Rs 16 crore out of which GMDC will hold 50% share and NFIL and GFL will hold 25% share each.
The JVA will be effective upon fulfillment of various conditions precedent including satisfactory due diligence - financial, environmental, legal to be conducted by the company and GFL in relation to the existing plant and the assets proposed to be transferred to the JVC.
Navin Fluorine International (part of Arvind Mafatlal Group of companies) is one of the four major fluorochemicals players in India. It manufactures fluorine based chemicals including refrigerants, specialty chemicals and bulk fluorides.