Chembond Chemicals, manufacturer and supplier of specialty performance chemicals across India, announced Saturday that it has signed an agreement with Henkel to divest its 49% shareholding in Henkel Chembond Surface Technologies.

''Established in 1974 by our founder Vinod D. Shah, the division was a pioneer in the metal treatment industry in the country. This divestment brings to an end a successful partnership between two highly reputed companies that came together to introduce newer technologies and grow along with the emerging industries in India. Guided by a common vision of exploiting synergies to deliver superior customer valuepaid us rich dividends with the JV becoming a market leader within its initial years itself and delivering over 40 times growth in sales during the 20 years of the partnership. We have a sense of great accomplishment and wish Henkel well for the future,'' says Sameer V. Shah, chairman and managing director, Chembond Chemicals.

''Our decision to divest was based on a number of factors, including a strategy to invest in and grow our water treatment, construction chemicals, industrial and high performance coatings, animal nutrition and industrial enzymes businesses. We have also just initiated new businesses like bio-based polyamides and the recently signed JV with Calvatis GmbH for industrial cleaning and hygiene systems for the food, beverage, brewing and dairy industries,'' adds Nirmal V. Shah, managing director, Chembond Chemicals.

Shares of the company gained Rs 0.7, or 0.17%, to trade at Rs 402.90. The total volume of shares traded was 420 at the BSE (9.48 a.m., Monday).