Privi Speciality Chemicals jumped 10.75% to Rs 1,475 after the company said that it has signed a joint venture (JV) agreement with Givaudan SA for setting up a new greenfield production facility which will be built in Mahad.
The facility will have state of the art manufacturing equipment tailor made to manufacture small-volume fragrance ingredients of medium to high complexity, also known as specialty ingredients.
'The JV has been approved by the board of directors PSCL in a meeting held on 29 July 2021. Privi will hold 51% of the equity of the JV company,' Privi said in a BSE filing made after market hours yesterday.
Givaudan SA is a Fortune 500, Swiss multinational manufacturer of flavours, fragrances (F&F), and active cosmetic ingredients. It is the number one F&F company of the world, having worldwide operations across multiple countries.
Fragrance ingredients are a key element of Givaudan's fragrance & beauty business. The joint venture with Privi supports the company's ambition to enhance fragrance capabilities in high-growth markets and its commitment to advance manufacturing capabilities as a core part of its long-term strategic vision.
Mahesh Babani, CMD Privi Speciality Chemicals, stated: "We look forward to showcasing our knowhow and manufacturing expertise as a trusted partner through this strategic joint venture. Independent of this development we will continue to serve all our key accounts without any incumbrance as per our long-standing relationship & agreements."
Separately, Privi Speciality Chemicals also announced its earnings for the quarter ended on 30 June 2021.
The company reported 37.8% rise in consolidated net profit to Rs 29.26 crore on a 14.9% increase in net sales to Rs 332.29 crore in Q1 FY22 over Q1 FY21. As compared with Q4 FY21, the company's net profit and net sales have declined by 51.1% and 5.9%, respectively.
Profit before tax in Q1 FY21 stood at Rs 39.56 crore, up by 38.7% from Rs 28.52 crore in Q1 FY21. Current tax outgo rose by 21% YoY to Rs 9.91 crore during the period under review.
Privi Speciality Chemicals is India's number one manufacturer and exporter of aroma chemicals. In the segment of aroma chemicals based on Pinene chemistry, Privi has amongst the largest manufacturing capacities globally.
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