Modi Rubber Ltd (MRL) announced today it has entered into a partnership with Japanese firm Asahi Organic Chemicals to set up joint venture company for making and selling of resin-coated sand.
The newly-created entity will be named 'Asahi Modi Materials Pvt Ltd' based in Gujarat, MRL said in a BSE filing.
Through its initital investment of Rs 30 crore, Modi Rubber Ltd will own 49 per cent stake in the JV firm and the rest 51 per cent stake will be held by the Japanese company, the Uttar Pradesh-based company said.
The JV firm will manufacture and sell resin coated sand. It will commence its operation from January 2014, it added. Shares of MRL company today settled at Rs 27 on the BSE, down 0.55 per cent from their previous close.