Financial Daily from THE HINDU group of publications
Tuesday, Feb 21, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 21, 2006 |
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Corporate
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Mergers & Acquisitions Pioneer Miyagi takes over gelatin facilities of China Synthetic Rubber M. Ramesh
Chennai , Feb. 20 PIONEER Miyagi Chemicals (P) Ltd (PMCL), part of the Pioneer group of Sivakasi, and a Japanese company Inai Holding Corporation have together taken over the gelatin manufacturing facilities of the Taiwan-based China Synthetic Rubber Corporation, through a special purpose vehicle (SPV) incorporated in Singapore. China Synthetic Rubber Corporation is said to be the largest pig skin and fish skin gelatin manufacturing unit in Asia, with installed capacity of 2,000 tonnes of gelatine a year and annual revenues of $10 million (Rs 45 crore). It is also the only pig skin gelatin plant in Asia licensed to export to the European Union. PMCL has a 40 per cent stake in the Singapore SPV. The Rs 60-crore acquisition was part-funded by the Exim Bank of India. The bank has lent Rs 9 crore to Pioneer Miyagi for participating in the equity of the Singapore JV, Jellice Pioneer Company Ltd. In addition, a bank guarantee of $2.6 million (Rs 12 crore) has also been provided by the Exim Bank to Pioneer Miyagi, for facilitating a term loan from a Taiwan-based bank. However, it is understood that banks in Taiwan were reluctant to accept a bank guarantee from any but one of the top six Indian banks. Asked about this, Mr K. Muthukumaran, General Manager, Exim Bank, told Business Line that the matter was taken up when a Taiwanese parliamentary delegation visited the bank in Mumbai last week and "the issue is being sorted out". Mr A. Niranjan Sankar, Vice-President, Pioneer Miyagi Chemicals, told Business Line that the Pioneer group intended to expand the capacity of the gelatin plant after one year of operations. The Pioneer group, which has been supplying matchstick making facilities to several countries, proposes to invest in setting up units in Uganda and Morocco.
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