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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (8681)	10/20/1999 5:58:00 PM
From: Mohan Marette	Respond to of 12475

CompanyWatch: EMCO Ltd (Siemens-Emco to set up JV) emcoindia.com Siemens, Emco set up JV for high voltage transformers Mumbai, October 20 (HT Correspondent) Siemens AG and Emco Ltd have today joined hands to form a joint venture company for manufacturing high voltage 400 kV transformers in the country. Siemens AG will hold a majority 51 per cent of the equity in the proposed joint venture named Siemens Power Transmission Ltd, while Emco will hold 49 per cent. The company will commence with a paidup equity capital of Rs 10 crore. According to Siemens, the new joint venture would be engaged in engineering, design, testing, marketing and servicing high voltage transformers. Siemens AG would provide the technology while Emco will bring in the infrastructure in terms of manufacturing. The joint venture will also utilize the existing sales and service network of both companies. The company would operate from the registered office at Thana, near Bombay. Siemens AG's head of the transformers business Dinandt said: "We are targeting a sales turnover of Rs 100 crore of which 60 per cent will come from exports and the balance 40 per cent from the domestic market". According an estimate by Emco, the total transformers market is about 48,000 MVA and in terms of value is Rs 1,100 crores($245 million). This market in the next 5 years is projected to be at 60,000 MVA and around Rs 1,400 crores ($311 million) in value at the existing price level. The Mumbai-based Emco is a major player in the Indian transformers market with a share of around eight per cent. Emco chairman and managing director R. Jain said: "We are currently manufacturing transformers of lower kilovolts i.e., less than 220 kV and hence there is no conflict of interest with the setting up of this joint venture with the Siemens". After signing the memorandum of understanding with Emco, Dinandt said, "Siemens was looking for a partner with a cost competitive and high quality infrastructure." "With our focus of consistently providing upgraded technology, we also wanted to partner with an organization which, apart from having the basic infrastructure, has the learning capability to consistently absorb knowhow and enhance its competencies," he added.