The Iran plant was being mulled over 4-5 years, but the plans were shelved for a number of unknown reasons. It however continued its supply to Iran from its Dubai unit and by providing assistance to the local manufacturers for setting up a plant, Daily News and Analysis reported.

The company plans to set up a facility with an initial capacity of 200,000 cylinders a year and will hold 49% stake in the project with an investment of $20 million.

The management control of the operation will vest with EKC. This will be EKC"s third overseas plant after Dubai and China.

The company is planning to raise up to $60 million to fund these capex plans, lead to 4-5% equity dilution.

Meanwhile EKC"s China plant will start production by the end of the year and will generate $20 million of topline for the company.