The Ahmedabad-based pigment and agrochemical manufacturing company, Meghmani Organics was caught in a fix even before it launches its joint venture with two different Japanese companies.
The Ahmedabad-based pigment and agrochemical manufacturing company, Meghmani Organics was caught in a fix even before it launches its joint venture with two different Japanese companies.
Company’s Japanese partners were left fuming after Gujarat CM Narendra Modi gave ‘insufficient’ information, while announcing the project.
The Japanese partners, who have formed the joint venture Trience Specialty Chemicals with Meghmani Organics, didn’t want state government to announce the project before they went public. Kaneka Corporation of Japan holds 41% stake, while Meghmani Organics has 39% stake with the rest 20% going to Mitsui & Co Ltd of Japan.
But the announcement by chief minister on Monday evening missed the name of Kaneka completely and it left the company unhappy.
The statement also said that Japan’s Mitsui India chairman-cum-managing director Makoto Suzuki met Modi on Monday. This irked Mitsui India as, in reality, its vice-chairman, Y Hata had met the chief minister at 11 am on Monday morning, and not Suzuki.
“It was insufficient announcement (by the chief minister),” said chairman and managing director of Meghmani Organics, Jayanti M Patel. “The main company, Kaneka Corporation which has the largest equity is not part of the announcement,” he said.
In reality, Trience Specialty Chemicals has been formed with an investment of $120 million (more than Rs600 crore) out of which 41% will be contributed by Kaneka. Company will conduct feasibility study of the construction of chlorinated polyvinyl chloride (CPVC) production facility at Dahej.
“We will be producing raw material for CPVC pipe producing companies. At present the raw material is imported and for first time in India, we will be producing it,” said Patel.
Trience Speciality Chemical is scheduled to start manufacturing in 2014 with an initial annual production capacity of 20,000 metric tonne, which is expected to be scaled up in relatively early stages of production.
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