PCBL Ltd. announced on Tuesday a revision in its joint venture agreement with Australian firm Kinaltek Pty for the manufacturing of battery products related to the electric vehicle market. Both the companies mutually agreed to replace Kinaltek with Kindia Pty as the JV partner for PCBL, an exchange filing said.
PCBL, which is a Kolkata-headquartered chemical manufacturer, will own 51% of the shareholding in the JV company, whereas Kindia will own 49% stake. The JV was first announced in November last year.
As informed to the exchanges earlier, PCBL will invest $16 million in the JV for the "acquisition of certain intellectual property from Kinaltek." The company will also invest an additional $28 million in stages, the filing added.
Separately, on account of certain ancillary expenses, PCBL will be subscribing to optionally convertible debentures worth $16.5 million of the JV company, it said.
PCBL and Kindia, through the joint venture, will set up manufacturing plants to produce nanosilicon-based products for battery applications. The target market includes EVs, the filing stated.
"The company is in the process of creating a value-added product portfolio, which it believes will command high margins, and this is a major step towards the same," PCBL said.
Share price of PCBL edged lower after the revision to the JV pact was announced. At 3:26 pm, the scrip was trading 0.72% lower at Rs 501.5 apiece on the NSE, whereas the benchmark Nifty 50 was up 0.12%.
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