Tripex to merge 3 group firms

Tripex Overseas, the Gujarat-based specialty chemical and intermediate company, is planning to merge its group companies ""RRJ Dyes and Intermediates, Prolife Bio Chemicals Industries and Solvochem Intermediates-with itself. The move is aimed at enhancing economies of scale as well as better capacity utilisation.

The three group companies, located at Bharuch and Ahemdabad, are also engaged in the manufacture of special and exclusive range of intermediates for dyes, pigments, pharmaceuticals, agrochemicals and others chemicals.

The company has submitted the amalgamation plan to the Bombay Stock Exchange and is waiting for approvals, said senior company officials.

On approval of the amalgamation from various authorities, the company will allot 20,14,114 additional equity shares to the promoters, which would enhance their contribution to 29.96 per cent from the existing 12.44 per cent, they said.

"With the acquisition of the proposed three companies, the total number of manufacturing plants of Tripex will go up to five and total production capacity would go up to 3,000 tonne from 1,000 tonne. Simultaneously, the turnover will jump to Rs 550 crore from the current Rs 217.7 crore," the sources said.

Ashok Jain, chairman and managing director, said since the company is going to have advantages of economies of scale as well as better utilisation of the capacity, it would consolidate group operations and this will result in considerable growth in TOL's bottomline for the current fiscal. "It will go a long way in creating value for shareholders as well," Jain added.

Currently, Tripex manufactures special and exclusive range of intermediates for dyes, pigments, pharmaceuticals, agrochemicals and others.

The main products of the company are broadly classified in to three categories, which include naphthalene derivatives, benzene derivatives and fast base.

Company sources said it was hopeful to achieve the growth in its turnover by 100 per cent in the next fiscal and minimum by 25 per cent each year thereafter in future.

The local as well as international demand of dyes and intermediates used in textile and pharmaceutical industries is very high and expected to grow further in future. Tripex's products are exported to various countries.

The company's major clientele include Ciba Specialities, Germany, Exochem, U K, Chukan Butsu, Japan, Clariant Iberica S A, Brazil and Associated Dyestuff.