Comments
Spanish company Tubacex has recently acquired 68 per cent stake in the stainless steel tubes and pipes business unit of Prakash Steelage Limited in a deal valued at Rs 240 crore.
The division employs about 250 people and has a turnover of about 25 million Euros (Rs 175 crore).
Tubacex will invest another 120-odd crore to upgrade Prakash’s existing manufacturing facility manufacturer near Daman, bring in state-of-the-art technology and new products, Ajay Sambrani, MD, Tubacex Asia and Middle East said.
Tubacex Prakash, the new JV company also plans to go in for an IPO in a couple of years’ time, he added.
“We have shifted the regional headquarters from Shanghai to India and have decided to make India as the base for APAC and Middle East,” Sambrani told Business Line.
The upgraded facility is scheduled to go into operation in the beginning of 2016. Around 40 per cent of the JV company’s production will be sold in the Indian market, while the rest will be exported globally, he said. Tubacex plans to generate revenues of Rs 1,500 crore from India, from the current revenue of Rs 300 crore.
Tubacex is present in the energy segment and makes stainless steel tubes and pipes for the oil and gas, power segments as well as tubing for oil exploration and urea production.
With this Joint venture, Tubacex Prakash will aim to be a leader in the stainless steel tubes and pipes business in India.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.