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News: PCBL as per its announcement made earlier has executed a JV with Kinaltek (an Australian company, which has developed nano silicon technology for battery application). PCBL shall own 51% in the JV Company which will have the intellectual property and know-how of products for battery application and a pilot plant for the same. PCBL will initially do an equity infusion of US$ 16 million (~₹ 130 crore) along with a commitment to infuse additional funds up to US$ 28 million (~₹ 230 crore) in stages (subject to the completion of certain milestones).
Views: This is a positive development for PCBL as this JV is being executed to expand into the growing battery application market (e.g. electric vehicles, etc.) where there is immense potential of profitable growth. PCBL in the past has indicating working in the conductive grade advance carbon material with application in EV batteries. Press release also mentions PCBL currently undergoing process of creating a value-added product portfolio which can command high margins (speciality grades). We have a positive view on the company amid volume led profitable growth on the anvil, capital efficient business model and inexpensive valuations.
Impact: Positive