Privi Speciality Chemicals stock hits 20% upper circuit after signing JV agreement with Givaudan SA

Privi will hold 5L% of the equity capital of the Joint Venture Company.

Jul 30, 2021 11:07 IST India Infoline News Service

Privi Speciality Chemicals Limited (PSCL) has hit a new all-time high on stock exchanges during Friday's trade. Investors were upbeat about the company after it signed a joint venture agreement with Givaudan SA, the global leader in fragrance creation, to set up a new greenfield production facility which will be built in Mahad, where Privi's main manufacturing plants are located.

Mahesh Babani, CMD Privi Speciality Chemicals Limited, stated that "We are excited with this opportunity to be partnering with Givaudan to support and expand their production of Speciality Fragrance ingredients. We look forward to showcasing our know-how and manufacturing expertise as a trusted partner through this strategic joint venture. independent of this development we will continue to serve all our key accounts without any incumbrance as per our long-standing relationship & agreements."

Maurizio Volpi, President of Givaudan Fragrance & Beauty, said: "This joint venture supports our global strategy to further strengthen our manufacturing footprint by also being present in India. Privi is not only perfectly positioned to support the region, but also highly skilled in managing the complexity of producing fragrance ingredients of different ranges of volumes. This agreement will enable us to evolve our dynamic portfolio of small signature products that enhance the perfumer's palette and give their creations a competitive edge in the market."

As per the regulatory filing, the Joint Venture has been approved by the Board of Directors PSCL in a meeting held on 29th July 2021. Privi will hold 5L% of the equity capital of the Joint Venture Company.

Notably, the facility will have state of the art manufacturing equipment tailor-made to manufacture small-volume fragrance ingredients of medium to high complexity, also known as speciality ingredients.

At around 11.29 AM, Privi was trading at Rs1580 per piece up by Rs248.15 or 18.6% on Sensex.

In the early deals of Sensex, the stock has hit a new 52-week high of Rs1598.20 per piece that is also the 20% upper circuit.

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