The company made this announcement during trading hours today, 7 December 2011.
Meanwhile, the BSE Sensex was up 53.78 points, or 0.32% to 16,859.11.
On BSE, 1.44 lakh shares were traded in the counter as against average daily volume of 35,986 shares over the past one quarter.
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The stock hit a high of Rs 10.73 and a low of Rs 9.55 so far during the day. The stock had hit a 52-week low of Rs 8 on 25 November 2011. The stock had hit a 52-week high of Rs 18.20 on 7 January 2011.
The mid-cap stock had outperformed the market over the past one month till 5 December 2011, falling 2.6% compared with Sensex's 4.31% decline. The scrip had, however, underperformed the market over the past one quarter, declining 2.5% as against Sensex's 0.55% rise.
The company has equity capital of Rs 25.43 crore. Face value per share is Re 1.
Meghmani Organics (MOL) said the joint venture company, Trience Specialty Chemicals, will initially manufacture 20,000 tonnes of chlorinated polyvinyl chloride (CPVC) annually, scalable later. It is expected to start production in 2014. The tripartite agreement was signed on 6 October 2011 to conduct feasibility study of the project, aimed at development of CPVC business in India.
Meghmani will have a 39% investment ratio in the venture while Kaneka and Mitsui will have 41% and 20%, respectively.
MOL said that Kaneka has been a pioneer in the CPVC business in Japan, USA and other Asian countries for years, and has CPVC plants both in Japan and in USA (Kaneka Texas Corporation since 2008) with its total global capacity reaching 46,000 metric tons per year. CPVC is being used as the raw material for hot water pipe, fire sprinkler pipe, industrial pipe and etc, and its demand has been growing globally, Meghmani said in a statement. Especially in India, galvanized iron pipe has been replaced by CPVC pipe in these fields, and such trend has been accelerating in recent years. To grasp such market opportunity, Kaneka India was established in 2010, and Kaneka has been seeking for a chance to build a CPVC plant in India, Meghmani further added.
Mitsui is a Japan based international trading & investment company. Mitsui has been cultivating CPVC business globally together with Kaneka for years, and has been focusing on entering into a CPVC manufacturing project in India. Mitsui will handle raw material PVC procurement, and will play a key role in CPVC sales and marketing in Indian market, Meghmani said in a statement.
On a consolidated basis, MOL's net profit fell 94.9% to Rs 0.82 crore on 6.8% rise in net sales to Rs 277.40 crore in Q2 September 2011 over Q2 September 2010.
MOL is a manufacturer of agrichemicals, pigment and other speciality chemical products. MOL operates an electrolysis plant named Meghmani Finechem in Dahej, Gujarat.
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