L&T goes to Hazira for manufacturing JVs

Larsen & Toubro (L&T), India’s largest engineering company, is likely to set up two manufacturing facilities — for turbines and boilers — at Hazira in Gujarat. L&T has joined hands with Japan’s Mitsubishi to float a joint venture that will build the Rs 350-crore boiler factory, while its other JV, with Toshiba for manufacturing turbines, will spend another Rs 350 crore.

The two JV agreements are likely to be signed soon, said company sources. “We had three locations in mind, including port cities of Hazira and Chennai. Now, we have almost zeroed in on Hazira, where the company’s heavy engineering complex is situated in a 200-acre property.

The company is slated to commence boiler manufacturing by 2009. The new subsidiary, L&T Power Projects, will own 51% stake in the JV company and Mitsubishi will hold 49%. Initially, the JV will start with 50 employees, to be expanded to about 1,250 people, once production gets into full swing. The joint venture with Toshiba is likely to be in 51:49 equity sharing, and the investment for setting up the plant may go up to Rs 350 crore.

(Source: Economic Times)

Spentex buys Czech firm Schoeller for $25mn

The board of directors of Spentex Industries, which met on June 30, 2007, has approved a proposal to acquire Schoeller Litvinov k.s. (Schoeller) in Czech Republic.

According to a release issued by Spentex to the BSE today. the acquisition of Schoeller was completed for a consideration of $25 million.

"The transaction will enhance the topline of the company by about euro 55 million and add another euro 6 million per year in cash flow. This acquisition is in line with company's inorganic growth strategy of acquiring good, operational assets of strategic value. Schoeller is a leading yarn manufacturer in Europe with operations in Germany, the Benelux countries, France and the Czech Republic with customer base spread across European Union," the release added

(Source: Business Standard )

TVS Electronics sells contract mfg unit to Finnish co

Printer-manufacturer TVS Electronics has sold off its contract manufacturing services business at Tumkur for Rs41.12 crore to Incap Contract Manufacturing Services, a 100% subsidiary of Finland based Incap Corporation.

TVS Electronics, a leading contract manufacturing service provider in the country, through it CMS business served global original equipment manufacturers by making box assemblies as well as PCB assemblies in its QS 9000-certified facility at Tumkur (near Bangalore).