Having completed acquisition of Germany based multinational DyStar, Ahmedabad-based Kiri Dyes and Chemicals (KDCL) is now aiming to leapfrog to over $ 1 billion (approx Rs 4550 crore) sales turnover by 2012.
KDCL achieved sales of Rs 238.53 crores with PAT of Rs. 17.78 crores for the 9 months ended on December 31, 2009.
KDCL through its SPV Kiri Holding Singapore Private Limited has completed acquisition of Germany based multinational DyStar along with its subsidiaries with support of its joint venture partner Longsheng Group, China, the company informed BSE today.
KDCL has plans to turnaround DyStar by replacing high cost German manufacturing base with low cost manufacturing in India and China. It is targeted that DyStar will be cash surplus from 2010 and will start generating PAT from 2011.
The company said in a press statement that it has set a sales target of about Rs. 572 crore (Euro 91 million) with expected PAT of about Rs 61 crore (Euro 9.75 million) in 2011-12 on a stand alone basis. DyStar is expected to achieve sales of Euro 675 million (approx Rs 4200 crore) with PAT of Euro 34 million in 2012 (approx Rs 212.5 crore). On a consolidated basis the expected sales is targeted as Euro 766 million (approx Rs 4800 crore) with PAT of Euro 43.75 million (Rs 274 crore approx) in 2012, it said in a release.
KDCL and its associate Lonsen Kiri Chemical Industries Limited are looking to benefit by transferring production of reactive dyes, acid dyes and direct dyes from Germany to India.
KDCL the largest manufacturer and exporters of reactive dyes & Intermediates from India has been promoted by Pravin Kiri, Chairman and Manish Kiri, Managing Director and their family.
Kiri Dyes and Chemicals Limited has a market capitalization of Rs. 1065 crores.
DyStar is the global market leader for dyes, dyes solutions, leather solutions, performance chemicals, new technologies and custom manufacturing of special dyes/pigments with about 21% market share globally having sales of Euro 800 Mn.
DyStar’s global client base includes well known international names such Wal-Mart, Levis, Nike, Addidas etc. On February, 4 2010 KDCL acquired DyStar through its SPV Kiri Holding Singapore Pvt. Ltd.
KDCL has paid Euro 50 million to acquire net asset of Euro 291.56 million in addition to fully depreciated fixed assets of Euro 140 Mn at replacement value. The acquisition also includes DyStar’s Patents, IP rights, brand names, trademarks & subsidiaries in 22 countries across the world.
