Business Daily from THE HINDU group of publications
Tuesday, Oct 12, 2010
ePaper | Mobile/PDA Version | Audio | Blogs

News
Features
Stocks
Foreign Exchange
Shipping
Archives
Google

Group Sites

Corporate - Alliances & Joint Ventures
Finnish firm Kemira, IVRCL ink pact for water treatment chemical biz

— P.V. Sivakumar

Joint venture:(From right) Mr Hannu Virolainen, Senior Vice-President, Kemira, Mr E. Sudhir Reddy, Chairman and Managing Director of IVRCL Infra and Projects, and Mr Sudip Sarkar, Managing Director, Kemira India, at a press conference in Hyderabad on Monday.

Our Bureau

Hyderabad, Oct. 11

Finnish chemical major Kemira Oyj and the promoters of construction company IVRCL have formed a joint venture to set up a water treatment chemical manufacturing unit near Visakhapatnam with an outlay of Rs 45-50 crore (about $10 million).

The 24-acre site for the manufacturing unit, with an initial capacity of 50,000 tonnes/ annum, has been acquired and the project would be commissioned within eight months. Kemira owns 51 per cent of the venture and IVRCL owns the rest.

In addition, Kemira, Hindustan Dorr-Oliver and IVRCL are forming an alliance to serve the water treatment market, which they believe is poised for significant growth across major towns.

Addressing a press conference, Mr Hannu Virolainen, Senior Vice-President, industrial customer segment, Kemira Oyj, said the venture marks the entry of the $2.5-billion chemicals major into India.

The venture will also trade products of the chemical major.

The Chairman and Managing Director of IVRCL, Mr E. Sudhir Reddy, said: “We sighted an opportunity to play a role in the water treatment and chemicals business, with the former being some sort of backward integration of the business.

The market for water treatment chemicals is estimated to be about $500 million in India and we are looking at a modest sales volume of about Rs 100 crore within two years.”

Kemira established its presence in India in 2008 with a base in Hyderabad and also set up pilot demonstration plants at Patancheru near here that can help simulate projects, Mr Sudip Sarkar, Managing Director of Kemira India, said.

The Finnish company, which has had over 20 acquisitions, has hinted that they were open to more. “Every market we enter, acquisition of companies forms a key aspect of the overall business,” Mr Virolainen added.

Mr Reddy said that water treatment projects, both industrial and residential projects within cities, offer immense scope for growth. This business will play an important role in this growth phase, he added.

Related Stories:
IVRCL Infrastructures bags Rs 750-cr Maharashtra project
IVRCL Infra approves 40% dividend
IVRCL expands transportation pie
IVRCL Assets bags Rs 1,500-cr road project

More Stories on : Alliances & Joint Ventures | Water

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Hind Dorr-Oliver may offer stake to investor


Suzlon buys out forging arm's stake from IDFC Private Equity
MIC Electronics to buy majority stake in Avni Energy
Cairn India open offer price is final
Bosch Packaging to expand, invest Rs 25 cr in Goa
Coromandel plans foray into urea business
Bosch Packaging to invest Rs 25 cr in Goa
Nagarjuna Agri sets up three wind turbines
Work on JSW Bengal's Salboni plant to start in Jan
Panasonic to invest Rs 1,000 cr in new plant
Fortis Global to buy HK company Quality Healthcare's units for Rs 882 cr
Jaiprakash, Dighi Port to invest Rs 600 cr in cement plant
Finnish firm Kemira, IVRCL ink pact for water treatment chemical biz
Heavy Engg Corpn open to foreign tie-ups for N-gear supply
‘We have offered the best price possible to investors'
Bridgestone to localise truck, bus tyre production in May
Quippo to start prospecting in Cambay onshore block
New small car on the anvil: Tata Motors
Tata Housing arm to focus on affordable housing
Moser Baer Projects will raise Rs 500-700 cr to power up thermal business




The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2010, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line