To form venture with Kemira Oyj of Finland
Promoters of IVRCL and Kemira Oyj of Finland have agreed to form a joint venture to manufacture water treatment chemicals at Visakhapatnam.
The unit to be set up with an estimated $10 million investment is expected to be operational in six to eight months.
Kemira, IVRCL and its construction equipment and water infrastructure arm Hindustan Dorr-Oliver (HDO) have also decided to form a strategic alliance to explore opportunities in the water infrastructure market not only in India but also in the neighbouring countries and the Middle East.
Chairman and Managing Director of IVRCL E. Sudhi Reddy told a press conference here on Monday that the plan was to manufacture 50 kilo tonnes of water treatment chemicals like inorganic coagulants annually in the first phase.
Senior Vice-President (Industrial Customer Segment) of Kemira, Hannu Virolainen, said they were expecting a turnover of Rs. 100 crore (about $22 million) in the next two years in the $500 million market in India. Their target was to achieve a turnover of $250 million in the next five years by making forays into water-intensive industries.
Inorganic coagulants are essential chemicals used in place of chlorine for treating raw and waste (sewerage) water besides industrial and municipal water.
Managing Director Kemira Chemicals India Private Limited Sudip Sarkar and Vice President (Asia Pacific, China) of Kemira Tomas Forsgard were also present.