The Hindu Business Line : Texmaco plans Rs 1,000-cr food park venture with LMJ Intl

Kolkata, July 19 Texmaco Ltd, a K K Birla group company, is planning to set up a “food park” — an industrial zone for food processing units — at Sankrail, some 25 km off Kolkata in Howrah District.

Announcing this to newspersons after the company’s 67th AGM, Mr S.K. Poddar, Executive Vice-Chairman, said that it would be a Rs 1,000-crore-project and would be executed through a 50:50 joint venture with the Kolkata-based LMJ International Ltd.

The company’s board on Wednesday took a formal decision with regard to the specific joint venture.

Mr Poddar said the company and its wholly owned subsidiary High Quality Steels Ltd jointly own some 140 acres of surplus land. “This asset would form the core of the project. We are also considering acquisition of more land in the neighbourhood for the project,” he added.

The diversified engineering company plans to expand largely through new joint ventures and some reorganisation through amalgamations.

The Executive Vice-Chairman said the company may float two more joint ventures with foreign collaborators in the area of manufacture of metro coaches and light weight freight rakes/cars, to be placed on the dedicated freight corridors proposed by the Indian Railways.

“We are in negotiations with a number of overseas players having the relevant technologies. The collaborations could take shape either through a new joint venture or a technical alliance. For instance, our talks with Trinity, one of the biggest global freight rake/car manufacturers, are at an advanced stage and we expect to wrap up an alliance within the next four months. The collaborative deal for metro rail coaches may be clinched in the next six months,” he said.

He said the company has envisaged new investments worth Rs 200 core in manufacturing and engineering businesses in the next couple of years. This would include investments in expansion of capacities in the foundry division.

More Stories on : Diversification | Foods & Food Processing | Engineering

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page