The Hindu Business Line : Jessop plans tie-ups with global cos

Kolkata, July 17 Jessop & Co is planning strategic alliance with overseas majors for entry into new generation coaches segment including those used in metro railway and other mass rapid transit systems. The company is also planning to set up a new facility at its existing premises in Durgapur for the fresh business initiatives.

“We are in the process of forging alliances with some leading companies in Europe and China for jointly manufacturing metro coaches in a few other items,” the Chairman, Mr P.K. Ruia, told newspersons after the company’s 75th annual general meeting.

Ruling out equity participation by the foreign partners, he said that the alliances would be limited to technical collaboration and supply of components.

Hinting that the company is aiming at some specific orders for forging such alliances, Mr Ruia said that plans in this regard might be finalised within a month.

On the possibility of including a strategic partner in Jessop equity, he said that though there were some discussions in this regard in the past, the company was yet to take a call on the same.

There is, however, a comparatively clear mandate on entering the capital market. “There is little doubt that promoters have too high a stake of over 90 per cent which should be diluted. However, we are interested in optimising the value in the capital market and are agreeable to wait for some more time till we hit the capital market,” Mr Ruia said.

Jessop currently has about one per cent public shareholding and the stock is rarely traded.

Assets revaluation

Meanwhile the company has done a revaluation of assets. As per the fresh valuation, the asset is now valued at Rs 800 crore up from Rs 35 crore. The asset value moved up primarily due to increase in land prices.

Jessop has possession of over 73 acres in Kolkata and 115 acres in Durgapur.