Indian company Kesar Petroproducts is in talks with several Iranian firms to form a joint venture that will set up a naphthalene, and urea factory in the Islamic nation, said a report, citing a top official..

Dinesh Sharma who is in Tehran along with an Indian commercial delegation told IRNA that the company is currently importing these products from Iran.

He pointed out that the establishment of a JV factory producing naphthalene, urea will ensure a secure supply of raw materials for Kesar.

Iran can also promote its production through joint foreign investments and transfer of technology, generate jobs and attain a sustainable production and income, he added.

'No deal has so far been signed, but we will propose it to the Iranian side,' he said, noting that removal of sanctions has provided an opportunity for direct talks with the Iranian firms.

Indian Prime Minister Narendra Modi in his recent trip to Tehran along with President Hassan Rouhani attended signing ceremonies of 12 cooperation deals on banking, ports and trade.