20 Microns forms JV with German firm Dorfner Holding; stock surges over 7 per cent

German firm Dorfner Holding GmbH & Co. KG along with 20 Microns Limited have signed a definitive agreement to create a new joint venture company to be incorporated in India that will develop, market, sell & distribute coloured Quartz-related products in India as well as other high-growth emerging markets in Asia & Africa as per the agreed terms between both the companies.  

In this JV company, Dorfner GmbH & Co. will own 55 per cent controlling stake while 20 Microns would be owning a 45 per cent stake. 

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

The new joint venture will be responsible for growing the coloured Quartz business in India for various industrial applications like composites, flooring & grouts, construction chemicals, and more. It will be importing products manufactured by Dorfner Germany for some of the applications and would be procuring products manufactured by 20 Microns India for other agreed applications. 

The joint venture will have a distinct product portfolio with the newest technology, high quality & product standards from both, Dorfner and 20 Microns at optimised 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. 

On Thursday, the stock of 20 Microns was trading at Rs 40, up by 7.1 per cent against its previous close of Rs 37.35 on BSE.