BK Giulini ties up with Polston for India JV
BK Giulini, a leading player in the global chemicals industry and part of the $3-bn Israel-based ICL, is entering India through a trading joint venture with Polston.
By Prince Mathews Thomas, TNN |
MUMBAI: BK Giulini, a leading player in the global chemicals industry and part of the $3-bn Israel-based ICL, is entering India through a trading joint venture with Polston.
The $600m BK Giulini wants to eventually make India its second supply hub in Asia after China, an executive said on Thursday.
India’s leather additive market will be the company’s point of entry. “We estimate the leather additive market here to be worth $250m. We’ve been sourcing a few of the raw materials and products from India, but now will also market our products here,” CEO Ytzhak Peretz said.
The additives enhance the chemicals used in the leather industry, right from the raw hide stage to the finished one, where the fine leather is customised according to customers needs.
The Germany-based BK Giulini’s entry will also see its Indian supplier turn into a joint venture partner. Polston manufactures chemicals for the leather industry and will hold a 49% stake in the JV, named BK Giulini Specialities (BKGSPL). Its managing director Amol Kapadia will be chairman of the JV.
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Mr Pravin Jamsandekar, who till now was the head of the leather business of Colour-Chem, will be BKGSPL’s CEO. “Like our operations in China, we intend to introduce other business segments in India in the later stage,” director Alexander Maurer told ET. “Turnover from our Chinese operations has increased to $50m in ’05, from $1m five years ago. In India, the JV is targeting a turnover of almost $7m in its first year and the $20m mark in five years, he said, adding that the turnover could increase further with the launch of other businesses.
BK Giulini, which was taken over by ICL in 1977, has interests in rhenoflex (shoe-inner part), pharma and cosmetics, food, hygiene products, alumina/water/paper and produces specialised phosphate products. “In India, our second area of interest could be rhenoflex, as it is related to leather,” said Mr Peretz.
Like its China operations, BK Giulini plans to set up manufacturing units in India and has already held talks with the Maharashtra Industrial Development Corporation for possible sites.
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“If there is an opportunity here, we will surely set up manufacturing units,” said Mr Amol Kapadia. BK Giulini is also scouting for possible acquisitions to complement its joint venture in the country. “We are looking at all possibilities,” said Mr Peretz.Start a SIP with as low as ₹500 with ET Money App!
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