Indo Asian enters into JV with Simon, Spain

Indo Asian Fusegear Ltd has announced setting up a joint venture with Simon, Spain. SIMON is Rs 15000 million (300 million Euros) group Headquarters in Spain, involved in manufacturing of electrical equipment with rich experience in design, manufacturing, marketing and sales. They produce top of the line wiring accessories for household and commercial buildings, protection equipment, outdoor lighting luminaries and home and intelligent building automation products.

The new JV company is setting up a Rs 300 million (Euro 6 million) project in India namely Indo Asian Simon Pvt. Ltd., in which the Company would hold 51% while Simon would hold 49% stake. The joint venture Company would operate in India and SAARC countries to begin with.

Indo Asian Simon Pvt. Ltd. will manufacture and market state-of-the-art Wiring Accessories and products that would include Intelligent building and home automation products. Such automation equipment installed in a house or building can be pre-programmed as per individual requirements. It can switch on and off the lights, heating system, air conditioners as per programme logic imbedded in the system. These easy to install, user friendly products can also be controlled (put on and off) from remote locations by mobile phones / land line phones, as may be desired.

Announcing the formation of the JV, Mr. V.P. Mahendru, CMD of the Company said, "We plan to introduce a wide range of these products including high quality wiring accessories, building automation and intelligent switching products / systems, specifically for commercial and industrial use for convenience and energy conservation. These products are currently not readily available in India and are also expensive. Under this JV, we will not only manufacture the products in India but will also make them available to users at affordable prices. For manufacturing these products, we are setting up production facility in Uttaranchal, which would be our fourth manufacturing facility in the tax free zone in Uttaranchal, creating jobs for over 500 young men and women, in this industrially underdeveloped area. The JV unit would also be eligible to tax concessions.

In the first phase, the JV Project cost is Rs 300 million (6 Million Euros). The products manufactured by the JV would be marketed in India and in SAARC region to start with.

"We are extremely pleased to be partnering with Simon to form this joint venture, for which extensive R&D facilities are also being set up at Haridwar for growth of futuristic designs according to user needs and energy conservation. This is a major event in the history of our company in entering the sophisticated era of automation in remote and intelligent switching technology and will play an important role in further growth of Indo Asian. Guided by common values, this joint venture will share best practices through transfer of technology and bring in state-of-the-art products into our country, enabling us to serve the nation better and address emerging opportunities," added Mr. Mahendru.

Source : Equity Bulls

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