Kiri Industries rises on order win; stock up 5%

NEW DEELHI: Kiri Industries soared more than 11% at Rs 177 today after the leading manufacturer of exporters & dyes bagged a massive $20-million per annum export order for supplies to South East Asia.

Mr Manish Kiri, MD of Kiri Industries, in a note to BSE, said, “This landmark order will allow KIL to penetrate into one of the largest textiles producers globally with its entire product range.”

Shares of Kiri Dyes have rallied over 40% in the last seven sessions. At 01:24 PM, shares of the company were trading 5.5% higher at Rs 167.75.

Kiri Industries Ltd also owns DyStar, the world’s largest dyestuff company with operations across the world, with sales of approximately $800 million.

The company is looking at an end 2012 or early 2013 listing of its German subsidiary DyStar possibly in Hong Kong at a PE multiple of 10-15x.

“DyStar went through restructuring for the last one-and-a-half years. Almost 70-80% of products have already been transferred to Asia”, said Manish Kiri, MD of Kiri Industries in an interview with ET Now.

Shifting manufacturing to India will improve DyStar’s margins. For the calendar year 2012 the company expects DyStar to earn net revenue of roughly $800 million and a PAT figure of $70 million.

Speaking to ET Now, the company’s management echoed fears of slowdown in Europe. The company however is looking for more acquisitions to fuel its inorganic growth.