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Samtel arm forms venture with German co

Our Bureau

NEW DELHI, July 3

TELETUBE Electronics Ltd, a group company of the Delhi-based Samtel, has formed a joint venture with Thales Electron Devices (TED) GmBH, the German subsidiary of Thales Electron Devices, by acquiring a 70 per cent stake in it.

TED is into the manufacture of high-tech cathode ray tubes for medical, avionics, defence and industrial applications.

The joint venture would be christened Samtel Electron Devices GmBH and will be based in Germany, said Mr Satish K Kaura, Chairman and Managing Director of Samtel Color Ltd.

Mr Kaura said TED was valued at Rs 14.5 crore and Samtel paid around Rs 10.15 crore for the 70 per cent stake. The funds were raised through borrowing from German banks and from internal resources.

TED had a turnover of 22 million euros last year and made an operating profit of around 2.2 million euros.

Mr Vijay Kumar, who was heading Samtel's black and white picture tubes division, will head the German company, which will have over 100 people.

He said the new venture would also have a presence in India in the near future as there are plans to set up a facility in Uttar Pradesh to manufacture the cathode ray tubes. ``In the next 6-9 months we will set up this facility at an investment of Rs 7 c rore,'' Mr Kaura said.