Raychem RPG Ltd. (RRL), a 50:50-joint venture between U.S.-based Tyco Electronics (TE) and RPG Enterprises, on Tuesday announced that TE would integrate its energy business in India into RRL, thereby creating a single entity.
This is expected to enable it to better serve energy customers and increase the local development of technology-based energy products and services specifically aimed at the Indian market. RRL will now be the exclusive marketer and seller of TE energy products.
The $10-billion turnover Tyco Electronics is a leading global provider of engineered electronic components, network solutions, specialty products and undersea telecommunication systems with customers in more than 150 countries.
“I am excited about this opportunity to enhance our product offerings and leverage the combined strengths of TE Energy and RPG Enterprises.
“It will propel RRL to higher growth in the future,'' said Ramani Kasi, CEO, RRL.
RRL is an established player in India for over two decades with an extensive manufacturing base. RRL, with access to new products and technologies following the integration, believes that the synergy would provide a strong growth engine to meet the needs of the power sector.
RRL today had a turnover of Rs.600 crore and with the addition of TE's range of products, another Rs.300 crore was likely to be added to the turnover over a five-year period, said Mr. Kasi adding that the new integration would add Rs.140 crore to the company's turnover in the current year.
RPG Enterprises Chairman Harsh Goenka said that half of the new venture's production would be for international markets.
RRL is setting up a new plant at Halol near Vadodara in Gujarat at an investment of Rs.50 crore.
“The plant will come on stream by March 2011 and the first phase will be for exports while products made in the second phase will cater to the domestic market,'' he said. A majority of RRL's exports would feed TE's global operations.
TE's energy product portfolio available from RRL includes medium-voltage and extra-high voltage insulators and surge arrestors; connectors and fittings and other accessories for low and medium voltage distribution and transmission segments; and high voltage connection systems for the transmission segment.