After having acquired Germany-based DyStar, the global leader for dyes and dyes solutions, Kiri Dyes and Chemicals Ltd (KDCL) will shift product manufacturing base of the former to India and China.
KDCL through its special purpose vehical (SPV) Kiri Holding Singapore Pvt Ltd has acquired Dystar Group with the help of its Chinese joint venture partner Longsheng Group. "We have paid an enterprise value of Rs 1350 crore for acquiring the multinational giant," said Manish Kiri, managing director, KDCL.
As per the restructuring plan chalked out by KDCL, the product manufacturing base will be moved to India and China. "Post restructuring, DyStar's products, which earlier used to be made in Europe, will now be produced in India, where KDCL has three plants. Also, some of the product manufacturing will be shifted to China as its JV partner Longsheng has it facility in the neighbouring country," Kiri added.
Kiri Dyes has no plans to reduce the number of employees with DyStar. "The headcount at DyStar will not be reduced. The DyStar had already trimmed the manpower before we acquired the German company," he explained when asked about restructuring of DyStar's labour strength.
The Ahmedabad-based dyes manufacturer has acquired selective assets of DyStar. "These assets will continue to be in operations," Kiri stated. The acquisition of DyStar will provide KDCL access to new markets and customer groups abroad, especially in Europe. According to industry players, the takeover will not put Kiri Dyes in the league of integrated textile chemical majors in the world, with over $1 billion turnover.
DyStar Group is a global market leader for dyes, dyes solutions, leather, performance chemicals, new technologies and custom manufacturing of speciality dyes and pigments with 21 per cent market share globally.
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It provides high quality products and services across the whole value chain in various sectors like apparel, hosiery, automotive, carpets and industrial fabrics.
The company has 18 production facilities in 12 countries with a total employee stength of around 3,500. The Group achieved sales of approximately 800 million Euro in 2008.