BF Utilities - Kalyani Group enters into JV agreement with Singapore Technologies Kinetics

BF Utilities Ltd has announced that Kalyani Group, the leader in the auto component sector in India, on November 02, 2006 has signed a Joint Venture (JV) agreement with Singapore Technologies Kinetics Ltd (ST Kinetics), Singapore. The JV agreement was signed in Singapore by Mr. Sew Chee Jhuen, President, ST Kinetics and Mr. B N Kalyani, Chairman, Kalyani Group.

ST Kinetics is one of Asia’s largest defense Companies with a growing portfolio of products and services for the defense, homeland security and commercial markets. ST Kinetics capabilities include the design and development, systems integration, production, operation & support and life cycle management of a wide range of specialty vehicles and defense equipment. It is the land systems and specialty vehicles arm of Singapore Technologies Engineering (ST Engineering), a global defense and integrated engineering group providing solutions and Services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, ST Engineering reported revenues of S$3.34b (US$2.1b) in FY 2005. Its market capitalization of over S$8b (about US$5.13b) ranks it among the largest Companies listed on the Singapore Exchange. ST Engineering has about 16,000 employees worldwide, and over 100 subsidiaries in 20 countries and 35 cities.

The Kalyani Group will hold majority stake in the JV. The JV is an effort to further Private Public Partnership (PPP) and largely compliment the research & development arm of the Government of India, such as the DRDO, and the manufacturing efforts of Ordinance Factory. The JV will be engaged in the design, engineering & manufacture of high technology and critical systems for the Indian Defense market.

The JV will offer Kalyani Group an access to ST Kinetics’ growing portfolio of products and services for the defense market, while Kalyani Group will leverage its full service supply capability on the basis of its technology, product design and product development expertise.

While announcing the signing of the JV agreement, Mr. B N Kalyani, Chairman, Kalyani Group said, "The Government of India is encouraging Corporate Sector to adopt a greater role in India Defense sector. The Kalyani Group has taken giant steps in that direction by signing the JV with ST Kinetics. The JV will offer synergy both in terms of technology and design & development. We hope to significantly contribute in the indigenisation of the Indian Defense sector. The JV will reiterate our strong commitment to providing world-class products & solutions to the defense sector in India and also demonstrate our technology leadership".

Source : Equity Bulls

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