The US based Carr Lane Manufacturing and Chennai based Rialto Enterprises Pvt Ltd Monday finalised a joint venture to produce specialised aero space components with an investment of Rs 100 crore over a three-year period.
"The investment envisaged is Rs 100 crore but will be in tranches over a three year period. Since the basic infrastructure is ready only fine tuning is required," the companies said in a release.
"This new JV will start commercial production within three months and the next 24 months we hope to achieve a sizeable turnover," managing director of Rialto Enterprises Ranjit Pratap said.
He said plans were afoot to produce very niche products which are in great demand by the industry.
The basic infrastructure was readily available to produce the high quality and reliable components that are used by the aero space industry, he said.
"In our factory on the outskirts of Chennai, we already manufacture through the Engineering division press components for Wabco. This Operation started in 2012-13 and is doing well," Pratap said.
The chief operating officer of CLM, Colin Frost said the CLM has purchased a variety of intermediate and finished goods from India for more than a decade.
He said with the recent expansion of aerospace manufacturing in India, CLM has begun to promote its products within India with success.
"CLM will contribute to India the technical know-how to manufacture tooling components," Frost said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)