Kiri Industries Limited (KIL) has announced that the planned sale of its 37.57% stake in DyStar Global Holdings (Singapore) Pte. Ltd. to Zhejiang Longsheng Group Co., Ltd has encountered another setback. The Chinese buyer has failed to meet the conditions for acquiring KIL's stake, valued at USD 676.26 million, primarily due to delays in obtaining necessary regulatory approvals.

Transaction Details

Delays and Extensions

The transaction, initially announced on May 30, 2025, has faced multiple delays:

1. The original completion deadline of October 2, 2025, was missed.
2. An extended deadline of November 3, 2025, was also not met.
3. Court-appointed receivers have now granted a further extension until December 1, 2025.

Financial Implications

To secure this latest extension, Zhejiang Longsheng Group is required to make an additional deposit:

• Previous deposit: USD 3,482,739.00
• New required deposit: USD 5,112,156.00
• Total escrow amount: USD 8,594,895.00

Next Steps

Kiri Industries has stated that it is seeking legal counsel to protect its rights in this matter. The company's management is closely monitoring the situation and will likely provide further updates as the new deadline approaches.

The repeated delays and the need for additional deposits raise questions about the transaction's eventual completion. Stakeholders will be watching closely to see if Zhejiang Longsheng Group can secure the necessary regulatory approvals by the new December 1, 2025 deadline.

Kiri Industries has assured shareholders that it will continue to keep them informed of any developments through appropriate disclosures on the company's website and to the stock exchanges.

Kiri Industries Limited (KIL), a leading manufacturer of dyes and chemicals, has released an investor presentation ahead of its upcoming meeting with investors and analysts scheduled for September 18. The presentation offers insights into the company's operations, financial performance, and strategic expansion plans.

Financial Highlights

KIL reported operational revenue of INR 7,400.00 million for the fiscal year. However, the company faced challenges, recording a negative EBITDA of INR 540.00 million and a negative Profit After Tax (PAT) of INR 1,084.00 million for the same period.

Core Business Overview

Kiri Industries continues to maintain its position as a significant player in the dyes and chemicals sector. The company specializes in manufacturing and exporting dyes, dye intermediates, and basic chemicals from India. Its production facilities are strategically located in Gujarat, leveraging the state's robust chemical industry infrastructure.

Market Capitalization

As of June 30, Kiri Industries boasted a market capitalization of approximately INR 39,958.84 million, reflecting investor confidence in the company's long-term prospects despite current financial headwinds.

Strategic Diversification

In a significant move to diversify its portfolio, Kiri Industries has announced its entry into the copper smelting and fertilizer sectors. This expansion is being executed through its subsidiary, Indo Asia Copper Ltd.

Copper Smelting and Fertilizer Project Highlights

1. Investment Scale: The estimated project cost stands at INR 10,661.00 crores, marking a substantial commitment to this new venture.

2. Equity Infusion: KIL has already infused INR 1,036.00 crores as equity into the project.

3. Funding Structure: The remaining investment follows a 70:30 debt-equity ratio, demonstrating a balanced approach to project financing.

4. Project Timeline: Construction work has commenced with a targeted completion timeline of 36 months, starting from October 1.

5. Strategic Partnerships: The company is in the process of securing long-term contractual arrangements with global miners and trading partners to ensure a stable supply chain.

Future Outlook

The diversification into copper smelting and fertilizer production represents a significant pivot for Kiri Industries. This move aligns with India's push for self-reliance in critical sectors and positions the company to capitalize on the growing demand for copper in renewable energy, electric vehicles, and infrastructure development.

While the current financial results show stress on profitability, the strategic expansion could potentially open new revenue streams and improve the company's financial health in the medium to long term.

Investors and analysts will likely seek more details on the execution plan for the new project and strategies to turnaround the core dyes and chemicals business during the upcoming meeting on September 18.

As Kiri Industries navigates through this transformative phase, stakeholders will be watching closely to see how effectively the company manages its expansion while addressing the challenges in its traditional business segments.