Key Quantitative Figures

  • Proposed manufacturing capacity: 6,000 tonnes per annum (TPA) of high purity chromium metal
  • Initial paid-up capital of JV company: INR 1,00,000 (Rupees One lakh Only)
  • Vishnu Chemicals Limited FY 2025-26 turnover: Rs 1600 crores
  • DCX Chrome SAS FY 2024-25 turnover: € 122 million
  • Delachaux Group FY 2024-25 turnover: € 1013 million

Parties Involved

  • Vishnu Chemicals Limited (India)
  • DCX Chrome SAS (France) - wholly owned subsidiary of Delachaux Group, France
  • Registered office of DCX: 68 rue Jean Jaures, 59770 Marly, France

Purpose and Rationale

The joint venture agreement is for setting up a greenfield manufacturing facility at Vishakhapatnam, Andhra Pradesh, India. The rationale is to secure seamless access to DCX's technology with assured supply of raw material from VCL, leading to production of high purity chromium metal.

Ownership Structure

  • JV ownership ratio: 50:50 between Vishnu Chemicals Limited and DCX Chrome SAS
  • No existing shareholding between parties prior to JV formation
  • Each partner will subscribe to and hold 50% of JV company's equity share capital

Significant Terms of Agreement

  • Equal representation on the Board of the JV Company for both partners
  • Certain identified/reserved matters require affirmative consent of both joint venture partners
  • Customary provisions relating to transfer of shares, pre-emptive rights, funding, and deadlock resolution
  • No nominee of DCX proposed to be appointed to Vishnu Chemicals Limited's Board

Related Party Status

  • Execution of JV Agreement and initial subscription do not constitute related party transaction
  • Upon incorporation and subscription, JV Company will become a related party of Vishnu Chemicals Limited
  • No existing relationship between parties and promoter/promoter group/group companies

Geographic Scope

  • Domestic JV company and manufacturing facility located in India
  • International partner (DCX Chrome SAS) incorporated in France

Funding Arrangements

  • Both companies will contribute in equal proportion of 50% each based on funding requirements
  • No shares or securities of Vishnu Chemicals Limited are being issued to DCX

Additional Information

  • The information has been placed on the company website at www.vishnuchemicals.com
  • Any amendment or termination of the JV Agreement will be disclosed in accordance with applicable regulatory requirements