Multibagger Chemical Company Announces Bold Move with New Subsidiary Incorporation

The stock has delivered a 1-year return of 105.9 per cent and a 3-year return of 25 per cent.

Kiri Industries Limited has announced the incorporation of a wholly owned subsidiary, Equinaire Holdings Limited, in the Cayman Islands as of March 27, 2025. This strategic move aims to explore future business opportunities in the wholesale trading of dyes, chemicals, and allied products, alongside investment activities. The newly formed subsidiary, with an issued share capital of USD 50,000, is expected to enhance Kiri Industries' global footprint, although it has yet to commence business operations. The company has confirmed that Equinaire Holdings Limited will be a related party, but the promoters have no direct interest in the transaction. This development aligns with Kiri Industries' broader strategy to strengthen its position in the global chemical market and capitalize on emerging opportunities.

Kiri Industries Limited (KIL) is a prominent player in the manufacturing and export of dyes, dye intermediates, and basic chemicals. The company operates five manufacturing units in Gujarat, with significant production capacities across various product segments. Despite a 58 per cent revenue decline from FY22 to FY24 due to global demand challenges, KIL remains focused on growth. The company is investing Rs 16,000 crore in a phased expansion to establish a copper production unit and a fertilizer facility, aiming for substantial revenue and profit increases post-completion. KIL holds a 37.5 per cent stake in DyStar Group, a market leader in the global dyes industry.  

The company is also involved in legal proceedings regarding its stake in DyStar, with a favorable ruling expected to conclude in Q4 FY25. KIL's strategic priorities include expanding its market presence and enhancing its product offerings to meet anticipated demand growth. Kiri Industries Limited has a market capitalization of Rs 3,475 crore. The stock has delivered a 1-year return of 105.9 per cent and a 3-year return of 25 per cent. The major public shareholders include Peaberry Language Private Limited with a 1.28 per cent stake and Swapnalok Media and Technology Private Limited with a 1.13 per cent stake.

Disclaimer: The article is for informational purposes only and not investment advice.