Ratnamani Metals and Tubes Limited on Friday announced that the Company has executed today a Joint Venture (JV) Agreement with Technoenergy AG, Switzerland, the company announced through an exchange filing.
Purpose of entering into the agreement
JV Partners entered into an agreement (JVA) on dated September 22, 2023 to form a joint venture Company namely Ratnamani Finow Spooling Solutions Private Limited in India, which shall be a subsidiary Company (JV Company).
The purpose of the JV Company is for providing pipe spooling solutions, fittings and auxiliary support systems for piping and tubing applications.
Through this JV, RMTL proposes to wider its product basket by providing comprehensive piping and spooling solutions in India and across the globe to the end consumers. RMTL possesses necessary infrastructure and strong reputation in the market to complement and supplement TEAG (and its group companies) for providing spooling solutions considering the focus for localization in various critical sectors like Nuclear Power, Oil & Gas, Thermal Power, Water & Sewage treatment and other applications.
FINOW GmBH a Subsidiary of TEAG based out of Germany, is operating in this segment since decades and possess strong technical expertise in manufacturing of the various types of high precision pipe spools, fittings, hanger support systems and auxiliary piping & tubing support solutions for power plants, chemical plants, oil & gas industries, water management and other industrial applications.
Terms of the agreement
Upon incorporation of the JV Company with Rs.270 Lacs as initial paid up capital, the Shareholding shall be in the ratio of 51% to be held by RMTL and 49 percent to be held by TEAG.
Any further issuance shall be brought in by the JV Partners, in their respective ratio of shareholding. RMTL reserves right to increase its shareholding upto 60 percent of the paid up capital in the Company on fully diluted basis upon incurring any major capex in future.
RMTL can nominate maximum upto 3 (Three) Directors and TEAG can nominate maximum upto 2 (Two) Directors.
RMTL shall assist the JV by providing necessary support for setting up the manufacturing facility in Gujarat along with general management and administration of the JV company.