Funke of Germany to invest $75-mn in India

Enters into JV with Surat-based Heatex Industries to make a wide range of plate and shell/tube type heat exchangers

Germany-headquartered Funke Warmeaustauscher Apparatebau GmbH plans to invest $50 million (Rs Rs 350 crore) in India to service its global clients from Indian operations, for which it has signed a joint venture with Surat-based Heatex Industries.

Under this pact, the joint venture unit will manufacture a wide range of plate and shell/tube type heat exchangers for various domains. The major focus of the joint venture would be to develop and offer a broad portfolio of quality products to major South Asian and other European clients of Funke present in India.

“This venture will bring in a range of international customers to us which will support the entire Group to emerge as a global leader. This venture will give us an edge over competitors,” said Arpan Patel, Managing Director, Heatex Industries.

In order to set up collaboration, Funke will bring entire investment of while Heatex would provide factory space at its existing location in Palsana, Gujarat.

The venture is projected to touch sales revenue of more than $75 million from India in the next five years. Through servicing global customers, however, the company plans to achieve a sales turnover of $150 million by 2020.

“The joint venture would help serve our clients in South Asia. Additionally, it will also help Heatex to address the high quality requirements of European companies.”

This joint venture is structured by Alcor Merger & Acquisitions Pvt Ltd, a portfolio company of Alcor Fund.