Gujarat Apollo to divest 49% in Johnson Screens

Mehsana-based Gujarat Apollo Industries has decided to divest 49 per cent of its holding in Johnson Screens (India), a joint venture company with Johnson Screens Inc, USA (A Weatherford Company).

Sources close to the development said this was done at the behest of the parent company Johnson Screens USA, which is looking at more business from India.

Upon completion of the disinvestment in March 2008, Gujarat Apollo will get a fund of around Rs 26 crore, which will be utilised for the company's expansion plans to manufacture new products and enter new markets.

The company is pre-dominantly into manufacturing of road construction equipment where 30 per cent of its products are exported to close to 40 countries.

A company official from Gujarat Apollo said the company was looking to consolidate its presence in the road construction equipment market which is growing 30-35 per cent each year.

The market is estimated to be around Rs 1,000 crore, which could grow to Rs 1,400 crore in the next two years, the official added.