Dorfner and 20 Microns to form new Joint Venture Company

Dorfner Holding GmbH & Co. KG, Germany and 20 Microns Limited, India have signed a definitive agreement to create a new Joint Venture company to be incorporated in India that will develop, market, sell and distribute Colored Quartz related products in India and other high-growth emerging markets in Asia & Africa as per the agreed terms between both the companies.

Dorfner GmbH & Co. and 20 Microns Limited will form a new Joint Venture company, with Dorfner owning a 55 percent controlling stake and 20 Microns owning a 45 percent stake. Dorfner and 20 Microns will transfer its India based sales and customers to the new Joint Venture Company.

The new joint venture company to be setup between Dorfner and 20 Microns is expected to be operational by May 2021, subject to regulatory approvals. Both the companies will operationally manage the joint venture, and its governance will be equally composed of representatives of Dorfner and 20 Microns with 2 executive and 2 non-executive directors from both companies.

The new joint venture will be responsible for growing the colored quartz business in India for various industrial applications like composites, flooring & grouts, construction chemicals and more. The new JV company will be importing products manufactured by Dorfner Germany for some of the applications and will be procuring products manufactured by 20 Microns India for other agreed applications. In the first few years till their market and brand is established in India and other emerging markets, they would continue with this structure and would think of manufacturing their entire product range in India at the right agreed time between both the companies.

"Dorfner and 20 Microns coming together is a testament to the long history of cooperation and mutual respect between the two companies. Our combined strengths - 20 Microns expertise in valuefocused manufacturing and operating model, and Dorfner's technical expertise, global reach and access to future technology - are a potent recipe for success. At its core, the partnership will be driven by the shared values of both companies, which are focused on caring for our customers, associates and our communities," said Mirko Mondan, CEO, Dorfner GmbH & Co. Germany.

"20 Microns and Dorfner have a long history of working together for various different products, and we are proud to partner with them to grow the colored quartz product range in India. We remain deeply committed to our employees, customers and partners, and this new era of collaboration will allow us to deliver more refined and technical products to consumers in this important market," said Atil Parikh, Managing Director, 20 Microns Limited.

The joint venture will have a distinct product portfolio with the newest technology, high quality and product standards from both Dorfner and 20 Microns at optimized costs. This winning combination will enable the joint venture to successfully position its products in India, as well as unlock the potential of other highly competitive emerging markets. By combining our respective talents, we will offer more standardized products to more customers in more places than ever before and deliver profitable growth to both Dorfner and 20 Microns.

Shares of 20 MICRONS LTD. was last trading in BSE at Rs.37.5 as compared to the previous close of Rs. 37.2. The total number of shares traded during the day was 15911 in over 159 trades.

The stock hit an intraday high of Rs. 37.85 and intraday low of 36.55. The net turnover during the day was Rs. 588838.

Source : Equity Bulls

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