The methylamine capacity will be increased in phases and require an investment of around Rs 60 crore to Rs 70 crore. The existing capacity of 5,000 tonnes of methyl amines will be increased by 8,000 tonnes by 2000, by 12,000 tonnes by 2004 and to 33,000 tonnes by 2005. The company expects a turnover of $10 million in its first year of operation.

RCF's existing assets of methylamine will be transferred to the joint venture at a price that will be decided by a government-approved valuer. The valuation andfeasibility report will be available within three months. The project is, at present, has been conceived to be entirely equity funded. The joint venture company will have a six-member board to be equally divided between the two promoters, while the chief executive officer ill be a UCB nominee and the chairman will be from RCF.

The current demand of methylamine in the country is around 16,000 tonnes, which is entirely met by domestic companies. However, the demand is likely to increase considerably in the future. By 2004-05, there is likely to be a demand supply gap of 13,000 tonnes, RCF chairman and managing director DK Varma said. Although there is no firm buyback arrangement between RCF and UCB, an understanding has been reached that the joint venture's excess output, after meeting domestic demand, will be exported with the help of UCB.

UCB is a global major in the manufacture of methylamines with a 15 per cent share of the world market. The company, at present, exports DMF to India.