Financial Daily from THE HINDU group of publications
Tuesday, Oct 26, 2004
Financial Daily from THE HINDU group of publications Tuesday, Oct 26, 2004 |
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Corporate
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Alliances & Joint Ventures Sundram Fasteners forms jt venture with Bleistahl Our Bureau
Mr Suresh Krishna, Chairman and Managing Director, Sundram Fasteners Ltd, with Mr Michael Kohler, Chairman, Bleistahl Produktions GmbH, Germany, at a press conference in Chennai on Monday. - Bijoy Ghosh
Chennai , Oct. 25 SUNDRAM Fasteners has set up a joint venture with Bleistahl Produktions GmbH of Germany for manufacturing valve guides and valve seat inserts (both engine components). The joint venture company, Sundram Bleistahl Pvt Ltd, will buy the existing plant and machinery of Bleistahl, Germany and relocate it in India, "line by line." Sundram Fasteners will hold 76 per cent stake in the paid-up equity of the joint venture, which is likely to be around Rs 10 crore. The German company's 24 per cent contribution will also come in the form of cash — the joint venture will pay for the plant and machinery concurrently. The machinery, officials said, was about seven years old.At a press conference here, Mr Suresh Krishna, Chairman and Managing Director, Sundram Fasteners, said that initially production facilities of a value of Rs 20 crore would be shipped into India. The plant is likely to be set up in Hosur. Sundram Bleistahl expects to be production-ready by September 2005. The entire production is to be sold back to the collaborators. In the first full year of operations (2006-07), the joint venture expects to achieve a turnover of euro 5 million (about Rs 25 crore). Over the next five years, the venture expects sales to rise to about Rs 125 crore. Over time, Sundram Bleistahl will also sell its products in India. On Indian sales, the joint venture will pay the German parent a 3 per cent royalty. Mr Suresh Krishna said that Bleistahl, a family-owned company, was the second largest valve seat insert manufacturer in the world and the biggest in Europe, with a turnover of euro 45 million. Sundram Fasteners would have three representatives and Bleistahl one on the four-member board of the joint venture company. Meanwhile, Sundram Fasteners is trying to expand its basket of products for the customers of Cramlington Precision Forge, UK, which it acquired last December.
More Stories on : Alliances & Joint Ventures | Automobile Components
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