Financial Daily from THE HINDU group of publications
Monday, Apr 10, 2006
Financial Daily from THE HINDU group of publications Monday, Apr 10, 2006 |
|
|
|
|
|
|
|
Corporate
-
Alliances & Joint Ventures Nilkamal, German co Bito Lagertechnik form venture M. Somasekhar
Venture plans The 50:50 joint venture will see a total project capital outlay of Rs 37 crore. Bito Lagertechnik would bring machines, train personnel, while Nilkamal will leverage the large network of sales teams across the country to market the products in the country.
Hyderabad , April 9 Nilkamal Plastics Ltd, leader in moulded furniture, and Bito Lagertechnik of Germany, Europe's leading material handling company, have set up a joint venture subsidiary in India. The 50:50 joint venture will see a total project capital outlay of Rs 37 crore. The production facility for the subsidiary called Nilkamal-Bito Industries, is coming up in Jammu, according to Mr Manish Parekh, Director of Nilkamal Plastics. The 15,000 tonnes per annum capacity plant will go on stream by March 2007. It will manufacture heavy-duty racks and shelves. For the Rs 400-crore Nilkamal Plastics, the project is a diversification to grow out of its slow growing moulded furniture segment. Bito Lagertechnik would bring machines, train personnel, while Nilkamal will leverage the large network of sales teams across the country to market the products in the country, Mr Parekh told Business Line here. Automobiles, logistics, large retail chains and other sectors are potential customers for the heavy-duty racks and shelves. Mr Parekh was in Hyderabad for the launch of the company's @Home-Complete Home Solutions Store.
Expansion plans
After Hyderabad, which is the first store, the company plans to open 25 more in major growing cities in the next 3-4 years with an investment of Rs 40 crore. Similarly, it plans to start 25 outlets on franchise route. Each store roughly requires about Rs 2 crore investment. At present, most of the `Lifestyle' furniture offered at these outlets is imported, he said. On the moulded furniture front, where the company holds 30 per cent of the estimated Rs 950-crore market, it is looking at new export regions in Africa with a possible move to set up a manufacturing unit.
More Stories on : Alliances & Joint Ventures | Plastics
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|