Sky Industries AGM declares 15% dividend, enters into JV with a Taiwan Company

Sky Industries Ltd has announced that the members at the 17th Annual General Meeting (AGM) of the Company held on September 23, 2006, have declared a dividend of 15% on the Equity Share Capital of the Company.

Further the Company has informed that, the Company is entering into an agreement with a Taiwan based Company, who are the market leaders in their product, to form a joint venture (JV) for manufacturing & marketing "Ribbons - for Label Printing", in India. The Company along with its group Company will hold 55% and the overseas JV Partner will hold 45% of stake in the JV. The project will be spread over 30,000 sq. feet land and intends to produce 12 million meters of "Ribbons - for Label Printing" in a year.

The potential demand for "Ribbons - for Label Printing, in India & sub-continents is huge. The JV also foresees a good potential for its products in Middle-east, Africa and Europe in the near future.

With this JV coming into effect, the Company will consolidate its market share position in the narrow fabric segment and will focus all its endeavour to develop the product, its applicability and its market share both Domestic as well International. The JV will nurture the know how of both the parties and the marketing techniques to enhance its market share in the "Ribbon segment", which in turn will enable the Company to spread its wings in other allied products and also achieve precision in the same.

The management of the JV believes that the venture will result in an improved shareholder's value for both the Companies.

Source : Equity Bulls

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