A 100% export oriented Dyestuff Plant of Lonsen Kiri Chemical Industries Ltd was inaugurated today in presence of Chief Minister Narendra Modi at Dudhwada, in Padara taluka, near Vadodara.
The new unit is scheduled to produce 20,000 tonnes of reactive dyes – expected to be enhanced to 50,000 tonnes – a year. The unit will become world’s second largest reactive dyestuff manufacturing facility in India.
Lonsen Kiri Chemical Industries Ltd is a joint venture of Gujarat based leading manufacturer and exporter of dyes and dye intermediaries, Kiri Dyes and Chemicals(KD & L) and Hong Kong, China based Well Prospering Group(WPL).
Well Prospering Group(WPL) is one of the 13 subsidiaries of world’s largest dye manufacturing company Zhejiang Longsheng Group.
KDCL has 40% stake in the joint venture while remaining share is with WPL.
The new facility will focus to serve market outside India. The JV expects to increase the global market share by minimum 10%.
In view of robust demand of dyestuff in the international market both joint venture partners intend to put the best strengths of both the countries together in terms of product technology, economy of scale, modem engineering designs, latest effluent treatment measures, combined sales and marketing, etc. after successful functioning of plant we will become world.’ s second largest reactive dyestuff manufacturing facility in India.
The chemical unit will provide employment opportunity to about 500 locals in Padara taluka. The JV is eyeing a sales turnover of Rs 500 crore in the first two years of production. The two companies had signed a Memorandum of Understanding (MoU) with the state government at Vibrant Gujarat investors Summit in January 2009 in this regard.
Speaking at the inauguration function, Gujarat Chief Minister Narendra Modi said “A Chinese company making investment in Gujarat indicates the pro-active industrial policies of the state” . Modi said there is scope for further investment in agro-based industries in Gujarat in the next 10 years after it achieved agricultural growth of 9.6 per cent, the highest in the country, according to a survey carried out by a US agency.
“Through this alliance we are looking at developing a long-term relationship with Gujarat. The successful completion of the project within seven months shows that Gujarat is investor friendly to foreign investors,” said chairman of joint venture Zhifeng Xiang, who also presented a cheque of Rs 11.11 lakh to Modi for Gujarat government’s girls’ education initiative Kanya Kelavani’.
“The company will make use of environmental-friendly measures and re-cycle and re-use the effluents. Around 90 per cent of the water used in manufacturing dyes and chemicals will be re-used once its goes through the effluent treatment plant. We will also be setting up rain water harvesting facility,” Lonsen-Kiri Industries Ltd managing director Manish Kiri said.
Kiri Dyes & Chemicals Limited, was incorporated on 14th May 1998 as a Kiri Dyes and Chemicals Private Limited at Ahmedabad, Gujarat KDCL has been promoted by Mr Praveen A. Kiri and Mr. Manish P. Kiri. KDCL is engaged in the business of manufacturing of reactive dyes which are called synthetic organic dyes used for cotton fabrics like garments, dress materials, bed-sheets, carpets etc. The dyes are of basically colours like black, blue, red, orange, yellow and numerous variants of these basic colours identified by color index number internationally.
The product range of the company comprises of more than 120 dyestuffs used by textiles, leather, paint and printing-ink industries with total production capacity of 10800 MT per annum. KDCL supplies reactive, acid, and direct dyes as well as dye-intermediates in various forms like standardized spray dried/tray dried – powder/granular, crude and reverse osmosis. All the products manufactured by the company have found global acceptance. KDCL has already commenced the first phase of Backward Integration Expansion Plan at Padra in
the District of Vadodara and commenced manufacturing of Vinyl Sulphone in March, 2006.