Kiri Dyes And Chemicals Limited IPO

Kiri Dyes and Chemicals Private Limited, incorporated on May 14, 1998, is engaged in the business of manufacturing of reactive dyes which are called synthetic organic dyes used for cotton fabrics like garments, dress materials, bed-sheets, carpets etc. The dyes are of basically colours like black, blue, red, orange, yellow and numerous variants of these basic colours is identified by color index number internationally. The company also manufactires dye intermediates that are used in the manufactiure of dyes. The existing products manufactured by the company are as follows:

* Synthetic Organic Dyes (S. O. Dyes)
* Dyes Intermediates: Vinyl Sulphone
* Dyes Intermediates: H-Acid

The product range of the company comprises of more than 120 dyestuffs used by textiles, leather, paint and printing-ink industries with total production capacity of 10800 MT per annum. Kiri Dyes and Chemicals Private Limited supplies reactive, acid, and direct dyes as well as dye-intermediates in various forms like standardized spray dried/tray dried - powder/granular, crude and reverse osmosis.

The manufacturing facilities of the company are located at Ahmedabad and Padra Taluka near Vadodara. Kiri Dyes and Chemicals Private Limited is intends to expand by backward Integration and in this regard has already commenced manufacturing of Vinyl Sulphone in April, 2006 and H-Acid from March 2007 that gives it a presence in Dye Intermediates business. Company through the proposed project on Sulphiric Acid intends to further integrate backwards and emerge as a dominant player in Chemicals.

Objects of the issue :

* To fund the capital expenditure for setting up of a plant to manufacture Sulphuric Acid, Oleum and Chloro Sulphonic Acid with a combined capacity of 500 M.T. per day adjacent to its existing unit at Village Dudhwada, Taluka Padra, District Vadodara thus enabling backward integration and economies of scale
* To fund the capital expenditure for Dyes and Intermediates Unit located at GIDC, Vatva, Ahmedabad
* To fund the additional working capital margin.