Millennium Post

Jayant Agro in strategic joint venture with French Arkema

Castor oil producer Jayant Agro Organics on Thursday announced a joint venture with France-based chemical firm Arkema by divesting 25 per cent stake in its subsidiary for an undisclosed amount.

In a filing to the BSE, Jayant Agro said it has entered into an agreement with Arkema to form a strategic joint venture through its subsidiary Ihsedu Agrochem Pvt Ltd (Ihsedu).

'Pursuant to the joint venture, Arkema will acquire around 25 per cent equity stake in Ihsedu,' the filing said, adding that the JV would focus on manufacturing various industrial and speciality grades of castor oil.

Separately, Arkema said that it has signed a joint venture agreement with Jayant Agro whereby the French firm 'will acquire a stake of some 25 per cent in Ihsedu Agrochem'.

'This joint venture aims to develop castor oil production in order to provide Arkema with long-term secure and competitive access to this strategic raw material for the manufacture of its biosourced polyamides,' Arkema said in a statement posted on its website.

This JV is in line with Arkema's strategy to secure the supply of a key raw material in order to support the development of its bio-sourced speciality polyamides in fast growing applications, such as innovative materials for lighter vehicles and oil & gas extraction, the French firm said.
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