Sayaji Industries Ltd has signed a joint venture agreement with SOCIETE DEVELOPPEMENT PRODUITS AFRIQUE - SDPA, FRANCE, the holding company of Alland and Robert for manufacturing of Gum Arabic/ Gum Acacia, Gum Ghatti and Gum blends. The Joint Venture will be a 50:50 venture, wherein the Company and SOCIETE DEVELOPPEMENT PRODUITS AFRIQUE - SDPA, FRANCE will hold 50% each in Sayaji Ingritech LLP which is presently a subsidiary of the company.
The Company and SDPA propose to invest 50% each in Sayaji Ingritech LLP for the purpose of manufacturing of Gum Arabic / Gum Acacia, Gum Ghatti and Gum blends with the technology provided by Alland and Robert.
Presently the company is holding 75.99% of the capital of Sayaji Ingritech LLP. After entering into this joint venture, the company will hold 50% and SDPA will also hold 50% in Sayaji Ingritech LLP the name of which will be changed in future in the manner as agreed to between the partners. The profit sharing ratio will also be 50 : 50 between the Company and SDPA.
The capital contribution of the Company and SDPA will be Rs. 3.5 Crore each in Sayaji Ingritech LLP (Joint Venture entity).