Business Daily from THE HINDU group of publications
Wednesday, Sep 06, 2006
Corporate - Mergers & Acquisitions
Vestas Wind sells stake in jt venture to Indian partner
The stake sale to became necessary after Vestas Wind Systems and NEG Micon, also of Denmark, announced a merger of the two companies in December 2003.
Vestas Wind Systems to continue to be a technical partner of Vestas RRB.
Chennai , Sept. 5
Vestas Wind Systems A/S of Denmark, a leading manufacturer of wind turbines, has sold its 49 per cent stake in Vestas RRB India Pvt Ltd to Mr Rakesh Bakshi, Managing Director, Vestas RRB India Pvt Ltd.
The consideration for the sale was not announced. When contacted, officials of Vestas RRB said it was a private deal between Vestas Wind Systems and Mr Bakshi.
Vestas Wind Systems will now operate in India through its wholly-owned subsidiary, NEG Micon India Pvt Ltd. NEG Micon will change its name to Vestas (I) Pvt Ltd, after obtaining necessary approvals.
Vestas Wind Systems has been in talks with its Indian partner in Vestas RRB for almost three years, to sell its stake in the joint venture. This became necessary after Vestas Wind Systems and NEG Micon, also of Denmark, announced a merger of the two companies in December 2003.
Under the agreement between Vestas Wind Systems and Vestas RRB, the latter will manufacture wind turbines below 750 kWcapacity, for which it will continue to have Vestas technology. NEG Micon, on the other hand, will concentrate on machines of 750 kW and above in capacity.
When contacted, Mr Sarvesh Kumar, Chief Operating Officer, Vestas RRB India, said that Vestas Wind Systems would continue to be a technical partner of Vestas RRB. Vestas RRB could continue to use the Vestas name in its machines.
However, it is learnt that Vestas RRB would be able to use the Vestas name only for machines below 750 kW.
Vestas RRB has a plant in Chennai, where it assembles turbines of 225 kW, 500 kW and 600 kW capacity. It is setting up a blade manufacturing plant near Chennai.
Mr Sarvesh Kumar said Vestas RRB had an equity capital of Rs 2.75 crore.
It posted revenues of Rs 610 crore and net profit of Rs 18.15 crore in 2005-06.
A Vestas Wind Systems press release said that it would continue to assist Vestas RRB to further indigenise components such as blades and control systems.
The Danish company entered the Indian market through its equity tie-up with RRB Consultants more than a decade ago.
NEG Micon will manufacture and market both the 750 kW and 1,650 kW turbines and will continue to focus on higher capacity turbines in line with Vestas' global policy, according to the press release.
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