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Jayanta Mallick

Japanese co may pick up 25-30% stake; valuation exercise on

Kolkata May 15 Empower Industries Ltd, a BSE-listed company, engaged in the business of information technology resale and systems integration, is entering into a strategic, technical and marketing alliance with HTL Co Japan Ltd, a 400 million yen closely-held and Tokyo-headquartered company.

In an e-mailed response to Business Line, Mr Dewang Master, promoter-director of Empower, informed that the Japanese company has identified Empower as its outsourcing partner for electronic manufacturing services. It is also preparing to pick up 25-30 per cent stake in Empower.

Valuation exercise

The valuation exercise for the equity stake is currently on. According to merchant banking sources the price could be at around of Rs 27 per share. The Re 1 face-value stock is currently trading at Rs 20.60. Empower has a paid-up capital of Rs 50 lakh only.

"Empower would undertake wholesale responsibility of designing, manufacturing and supply of equipments", Mr Master, who controls 48 per cent voting rights in the Indian outfit said.

HTL is into sales and service of the equipments required and used in the manufacture of semiconductors and items such as flat panel displays and photo masks. It caters to the needs of OEMs such as Sony,Toshiba, NEC, Mitsubishi, Samtel, Fujitsu andNippon Silicon. HTL also provides solutions for high precision moulds using laser beam and electron beam technologies.

It has had technical partnership with the likes of Interra Systems, Scanner Technologies Corporation, Sonata Software Ltd, Adamya Computing Technologies, Mr Master added.

Joint venture

Empower has announced that it is forming a joint venture with SPS Inc of the US and a separate manufacturing facility for power supply / power conversion equipment was being set up.

In a communication to the BSE, it said that this technology is embedded in a wide range of products such as amplifiers and comparators, diodes as also rectifiers, switches, power drivers and controllers, voltage regulators, transistors and temperature management equipment.

Technology

These are employed in commercial and industrial sectors as well, where power is conveniently manipulated to produce the required level of energy to operate high-powered mechanical devices or machines or even to produce audio and visual display and digitally-illuminated environment.

To start with, the company intends to manufacture high powered power supply and advanced power supply for LED televisions through this joint venture arrangement with SPS, which has won a 5-year global contract for supply of these products. The US company approached the Empower for technical and 100 per cent marketing arrangement under a joint venture.

More Stories on : Alliances & Joint Ventures | Hardware

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