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Jayant Agro Organics has entered into a joint venture agreement with Arkema, a global chemical company to form a strategic joint venture through Jayant Agro's subsidiary, Ihsedu Agrochem (Ihsedu). The joint venture will be focused on manufacturing various industrial and specialty grades of castor oil which is valued at over Rs 2200 million.
The joint venture has been unanimously approved by the board of directors of Jayant Agro and Ihsedu in their respective meetings held on 11 April 2013. It is expected that the closing will be achieved after completion of the necessary transaction related commitments. Pursuant to the joint venture, Arkema will acquire around 25% equity stake in Ihsedu.
Through this joint venture with Arkema, which is the largest consumer of castor oil, Jayant Agro and its subsidiary Ihsedu will further consolidate their position in the castor oil market as a leading, consistent and reliable supplier to the world market. As part of the joint venture arrangement, Ihsedu will exclusively focus on manufacturing and sales of all grades of castor oil and Jayant Agro will exclusively focus on manufacturing and sales of value added castor oil products.
The company made this announcement during the trading hours today, 11 April 2013.
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