Kalyani Group forms jt venture with ST Kinetics
The Pune-based Kalyani Group, a leading player in the global auto components sector, signed a joint venture agreement with Singapore Technologies Kinetics Ltd (ST Kinetics). Mr Sew Chee Jhuen, President of ST Kinetics, and Mr B.N. Kalyani, Chairman of Kalyani Group, signed the agreement in Singapore on Thursday.
The $1.5-billion Kalyani Group with interests in forgings, automotive components and other niche segments, such as non-conventional energy and heavy engineering components, has been eyeing the defence sector for some time now.
New sector
Business Line had reported in early June 2004 that the company was planning to make an entry into the Rs 10,000-crore defence contracts business and that Mr Kalyani had led a team from the company to make a presentation to high-level defence ministry officials
The $2.1-billion (2005 revenues) ST Kinetics is one of Asia’s largest defence companies with a growing portfolio of products and services for the defence, homeland security and commercial markets. ST Kinetics’ capabilities include design and development, systems integration, production, operation and support, and life cycle management of a wide range of specialty vehicles and defence equipment.
The Kalyani Group will hold majority stake in the joint venture, which is an effort to further private-public partnership and complement the research and development arm of the Government, such as the Defence Research and Development Organisation and the manufacturing efforts of Ordnance Factory. The joint venture will be engaged in the design, engineering and manufacture of high technology and critical systems for the Indian Defence market.
`Offering synergy’
It will offer the Kalyani Group access to ST Kinetics’ portfolio of products and services for the defence market, while the Kalyani Group will leverage its full service supply capability on the basis of its technology, product design and product development expertise, a company statement said.
"The Government of India is encouraging the corporate sector to adopt a greater role in India’s defence sector. The joint venture will offer synergy both in terms of technology, design and development. We hope to significantly contribute in the indigenisation of the Indian defence sector. The venture will reiterate our strong commitment to providing world-class products and solutions to the defence sector in India and also demonstrate our technology leadership," Mr Sew said.
He added that "The Kalyani Group is a leading engineering conglomerate with a strong commitment to grow its defence business. It is the right strategic partner in India to complement ST Kinetics’ capabilities. This JV is a timely opportunity for us to establish a design and manufacturing base to meet the demand for leading edge products and solutions required by the Indian defence forces."
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