The Hindu Business Line : BPL seeks shareholders' nod for circuit board biz transfer

Bangalore April 18 BPL Ltd has sought shareholders' approval for transferring its printed circuit board business to a joint venture in which both BPL and Cipsa-RIC will have an equal stake.

BPL's Managing Director, Mr Ajit Nambiar, told Business Line that the joint venture would initially commence operations with an expansion of the current printed circuit board (PCB) manufacturing activities. It would also explore the entry into newer sophisticated areas to cater to PCB requirements for high technology communications, computing and consumer durable products. Both the venture partners have their plants located in Doddaballapur, near Bangalore.

The new joint venture will be called Cipsa-BPL Monocara Pvt Ltd.

Cipsa-RIC is a joint venture between Spanish PCB maker Cipsa and two entrepreneurs, Mr Anil Gupta and Mr Alok Garg. Both Cipsa and the two entrepreneurs jointly acquired RIC India in December 2005.

`Equal partners'

"In this venture, BPL and Cipsa-RIC will be equal partners and would combine their mutual strengths to provide the industry's highest standards in quality and competitiveness," Mr Nambiar said. While BPL would transfer its existing PCB plant to this venture, Cipsa-RIC will contribute by way of latest manufacturing equipment, technologies and necessary working capital.

In a notice to the Bombay Stock Exchange, BPL said it has sought shareholders' approval to sell/transfer the PCB business of manufacture and sale of single sided bare-board PCBs as a going concern along with certain specified plant and machinery and employees to the proposed joint venture for a consideration equivalent to Rs 2.75 crore and for lease of certain specified plant and machinery and immovable assets consisting primarily of land, buildings and all civil works for a monthly rent of Rs 7 lakh for 60 months.

The Bangalore-based BPL has also sought approval for investing up to a sum of Rs 2.75 crore in the joint venture

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