Kiri eyes global listing of two of its subsidaries

Kiri Dyes & Chemicals Ltd (KDCL), dyestuff manufacturing company, is planning to list its two subsidiaries — China-based Lonsen and German major DyStar — on a global stock exchange by 2013.

“In three years from now, we will look at expanding the reach and presence of the two companies and for that we will require funds. So, we plan to list the two companies in one of the topmost stock exchanges of the world,” said Manish Kiri, managing director, KDCL.

Kiri was talking to newspersons on the sidelines of announcing the acquisition of DyStar’s subsidiary in the US. KDCL acquired DyStar, a global dyestuff and chemicals company, earlier this year.
He said as far as the current fund requirements are concerned the company has already raised the amount through a recently concluded qualified institutional placement (QIP).

The company raised close to Rs240 crore through the QIP which would mainly be invested in setting up two greenfield manufacturing facilities based on the technology sourced from DyStar.

“The first phase of the project will be ready by end of November 2011 and the second phase by June 2011,” Kiri said, adding that the total cost of the project will be Rs250 crore.

“With the acquisition of DyStar’s US operations, KDCL becomes one of the largest dyestuff and chemicals manufacturing companies in the world with a size of close to Rs2,000 crore, while its Indian peers are in Rs500 crore range,” said Hitesh Kuvelkar, associate director, First Gobal, which managed the Kiri Dyes’ QIP.

He said the company is targeting revenue of $1 billion by the end of this fiscal.

On the local dyestuff industry, Kiri said Indian companies are largely dependent on exports with almost 70% of the products manufactured here being exported. The domestic dyestuff production was 140,000-150,000 tonnes last year a growth of 11-12% over the previous fiscal, while it is expected to touch 15% this year.

KDCL, he said, grew at a rate of 25% in the last four years.