Western Auto, Palfinger in JV

CHENNAI: The $400-million Western Auto (part of the ETA Star Group, UAE) and the e585.2-million Palfinger have entered into a joint venture for distribution and servicing of Palfinger cranes and hookloaders in India.

The partners will invest e1.2 million in the new subsidiary, Star Palfinger Equipment. The ETA Star Western Auto Group will hold 74% stake in the JV and the balance will be picked up by Palfinger Asia Pacific.

The pact is aimed at tapping growth opportunities in infrastructure projects apart from transportation and construction, Palfinger CEO Wolfgang Anzengruber said.

Star Palfinger will be the exclusive importer and marketer of the selected range of Palfinger cranes and other products.
ETA Star Western Auto India director and CEO Jahufar Buhari said the arrangement will work to set a new paradigm in sales and services of articulated boom cranes in the country.

According to market researchers, the demand for cranes is expected to grow from 80 in 2006 to 1,100 by 2015. Targeted revenues in the first year are around Rs 10 crore, Mr Anzengruber said, adding that the 75-year-old Palfinger Group has been active in India for about a decade now.