Japan's Metal One seeks FIPB okay for 3-party JV
The other two partners in the JV are Tata Metaliks and Japan’s Kubota.
By Vivek Sinha, TNN |
NEW DELHI: Japanese trading giant Metal One Corporation has applied to the Foreign Investment Promotion Board (FIPB) for a 5% stake in a three-party joint venture.
The other two partners in the JV are Tata Metaliks and Japan’s Kubota. Tata Metaliks, a pig iron manufacturing company of the Tata Group, would be the majority stakeholder with 51% equity stake.
While Tata Metaliks will bring its expertise in the manufacture and sales of ductile iron pipes, fittings and accessories, Metal One will primarily be a provider of supply chain and distribution network. The JV will be largely led by Tata Metaliks with Kubota as the technology partner. Kubota is one of the world’s largest ductile iron pipe makers.
Tata Metaliks will hold 51% in the JV while 44% stake will be held by Kubota. Metal One plans to invest Rs 3.75 crore in it for a 5% stake.
The venture will allow Tata Metaliks to foray into the ductile iron pipes business. The project is likely to involve an investment of Rs 150 crore. This manufacturing unit located at Kharagpur in West Bengal will use liquid pig iron from Tata Metaliks and is likely to become operational by the end of FY09. It would produce 1.1 lakh tonnes per annum initially.
For Metal One, this would be its second minority-equity partnership in the Asian region. It acquired a 5% stake in Thai Metal Trade, a public-listed steel company in Thailand early this month.
Thai Metal Trade is Thailand’s largest hot-rolled product service centre, steel distributor and manufacturer.
The other two partners in the JV are Tata Metaliks and Japan’s Kubota. Tata Metaliks, a pig iron manufacturing company of the Tata Group, would be the majority stakeholder with 51% equity stake.
While Tata Metaliks will bring its expertise in the manufacture and sales of ductile iron pipes, fittings and accessories, Metal One will primarily be a provider of supply chain and distribution network. The JV will be largely led by Tata Metaliks with Kubota as the technology partner. Kubota is one of the world’s largest ductile iron pipe makers.
Tata Metaliks will hold 51% in the JV while 44% stake will be held by Kubota. Metal One plans to invest Rs 3.75 crore in it for a 5% stake.
The venture will allow Tata Metaliks to foray into the ductile iron pipes business. The project is likely to involve an investment of Rs 150 crore. This manufacturing unit located at Kharagpur in West Bengal will use liquid pig iron from Tata Metaliks and is likely to become operational by the end of FY09. It would produce 1.1 lakh tonnes per annum initially.
For Metal One, this would be its second minority-equity partnership in the Asian region. It acquired a 5% stake in Thai Metal Trade, a public-listed steel company in Thailand early this month.
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Thai Metal Trade is Thailand’s largest hot-rolled product service centre, steel distributor and manufacturer.
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