Bhansali Engineering Polymers Ltd (BEPL), a public listed petrochemical company, has joined hands with Japan's Nippon A&L Inc for a new venture related to polymers, as per a stock market disclosure.
The board of directors of the company had approved the draft joint venture in the meeting held on April 20, 2013.
Through this JV agreement, Bhansali Engineering Polymers and Nippon A&L Inc will incorporate a new private company to undertake technology and application development work of numerous specialized grades of ABS, AES, ASA resins and their alloys with other polymers. This would cater to requirements of automotive, telecommunication, electrical & electronics and other sectors.
Founded in 1986, Mumbai-based Bhansali Engineering Polymers is engaged in manufacturing of ABS (acrylonitrile butadiene styrene) which acts as a raw material for companies dealing in automobiles, home appliances, telecommunications, luggage, bus body and various other applications. It had revenues of Rs 414 crore with negligible profit during FY12.
The company’s scrip shot up 9.82 per cent to close at Rs 18.67 a share on the BSE in a strong Mumbai market on Monday.
Headquartered in Osaka, Japan, Nippon A&L is a joint venture between Sumitomo Chemical Co Ltd and Mitsui Chemicals Inc which was formed by integrating the ABS resin business and SBR latex business of both the firms.