MUMBAI, July 10: Aegis Chemicals, promoted by the non-resident Chandaria and Khimisia families, has roped in global speciality chemicals major Prestorp AB of Sweden for a new joint venture. The move is aimed at keeping a hold on its 60 per cent share of the pentaerythritol market in the face of increasing competition from multinationals. The Swedish major will hold 51 per cent of the equity, while Aegis will retain the rest 49 per cent in the venture, Prestorp-Aegis. Aegis Chemicals' shareholders have approved the proposal, and the agreement is expected to be formalised soon.

Prestorp was keen on a majority stake in the venture and the deal was clinched recently, sources in Aegis Chemicals said. For starters, the Swedish company will buy back the pentaerythritol-based products, used in the manufacture of paints. The venture intends to exploit the booming market for specialty chemicals products in Asia. It plans to become the market leader here in a few years, sources said.

Talks of Aegis Chemicals forming a joint venture have been doing the rounds for some time now, which had lifted its stock price to Rs 23 from Rs 17 on the stock exchanges. The stock, currently, quotes Rs 19 on the Bombay Stock Exchange. Aegis Chemicals produces pentaerythritol and fatty alcohol. It has a technical tie-up with Tractabel Engineering for its cryogenic LPG storage division. For 1995-96, the company reported a 19 per cent increase in sales due to volume gains at its petrochemicals division and capacity additions in the chemical storage division. It reported a net profit of Rs 11.73 crore, up from Rs 11.54 crore a year earlier.

Ciba of Switzerland has announced plans to strengthen its speciality chemicals operations in the country through an alliance with Indian Dyestuff Industries. Hindustan Lever, Unilever Plc's subsidiary, is reportedly in talks with ICI Plc for a speciality chemicals joint venture.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.