Sarda Plywood, to tie up with US firm in bid to diversify
/ BSCAL September 04,1996
Sarda Plywood, To Tie Up With Us Firm In Bid To Diversify
/ BSCAL Sep 04, 1996, 00:00 IST
Managing director Sudeep Chitlangia declined to name the American partner. The prospective US partner has already applied to the Foreign Investment Promotion Board (FIPB) for its approval.
The two partners will contribute equally to the equity of the project.
The project to be set up in Goa, is likely to be around Rs 130 crore. The capacity is likely to be around 6,000 tonne per annum, Chitlangia added. The final modalities of financing are yet to be worked out, said Chitlangia.
If the project receives FIPB clearance, this will be the first instance of Sarda Plywood Industries entering into a joint venture. The company has decided to manufacture more durable and value-added plywood products. Value-addition in the plywood industry is the need of the hour, Chitlangia said.
The S P Goenka-owned Kitply Industries, and the largest player in the industry, has also decided to go in for value-addition of its products and not capacity enhancement.
Chitlangia admitted that due to problems in the availability of raw material which has adversely affected the entire plywood industry, the company production during the current fiscal has been down by 5 per cent.
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