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Tuesday, Dec 21, 2004

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Jessop inks pact with McKinsey Hydrocarbons

Pratim Ranjan Bose

Kolkata. Dec. 20

JESSOP & Co has entered into a technical collaboration with McKinsey Hydrocarbons, an Australian engineering major, to meet the requirements of the oil and natural gas sector.

It expects to register a turnover of around Rs 50 crore from the hydrocarbons sector in the next fiscal. As per the agreement, Jessop will be their sole Indian partner.

Though the tie-up is currently restricted to India, the companies may jointly take up projects in Bangladesh and Myanmar in the future.

Jessop is already exploring business opportunities in wagon and coach manufacturing and ship-repairing in the two countries. Negotiations are also on for orders from the Myanmar Government for supply of coaches.

The Australian company is a major manufacturer of a range of separator equipment used in oil exploration and production such as heater-treater, de-salter, glycol dehydration process packaging equipment, condensate recovery process package, hydrogen generation plant and so on.

Besides India, the company is active in other South-East Asian markets such as Malaysia, Indonesia and Singapore.

Talking to Business Line here on Monday, the Chairman of Jessop, Mr Pawan Ruia, said the company has forayed into the sector to tap the emerging opportunities, especially in the Mahanadi basin.

"Orissa has emerged as a hub of such activities in recent years. We are already negotiating with a few exploration companies including ONGC for supplying such equipment, which are not manufactured locally."

According to Mr Ruia, McKinsey previously had a business tie-up with the Jumbo group controlled by Hindustan Dorr-Oliver Ltd. Meanwhile, Jessop is also negotiating a tie-up with an international construction major for its crane manufacturing facility in Chennai to expand the product range.

"Jessop is one of the few suppliers globally of the heaviest of cranes. However, we have limited offerings in pockets of the value chain, especially those on the movable category," he said.

The company is already into a technical collaboration with Tekhom of Ukraine for making a foray into ship-building and ship repairing, and is now negotiating with the Kolkata Port Trust for taking over a dry dock through a long-term lease for shipbuilding and repairing. Parallel discussions are also on for setting up such facilities, preferably in Visakhapatnam, solely dedicated to the Indian Navy.

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