Chennai-based CRP India Pvt Ltd, which is into pressure die casting, has formed a joint venture with Twin City Die Castings Company of the US. The JV partners are planning to invest around Rs 100 crore over the next three years.
A new company — CTI — has been formed with CRP holding a 51 per cent stake and Twin City the remaining, said Thomas Mathew, director, Worbus International Ltd, which is also a part of the JV.
CTI will have three directors from CRP while two will be from TCDC and one from Worbus. The Worbus director will be on the board for five years to assist in the execution of business plans among others.
“Worbus will also bring in additional private equity funds as necessary to assist the growth of the company” said Thomas.
The joint venture will cater to TCDC’s international clients in India and other parts of the globe, said Todd Olson, director – business development, TCDC. The new company is eyeing 30-50 per cent of the business through exports.
It would set up its basic operations in the first year and introduce four new product verticals in its second year. In the third year, Worbus would help in introducing PE capital for the expansion of new plants and in the fourth year, CTI would look at acquiring new manufacturing capabilities or new plants.
“The new company is looking at acquiring companies which have a turnover of around Rs 100 crore. This would give both manufacturing and customer access,” said Olson. It would also go for an IPO in five to seven years, “subject to market behaviour and the target which the company had set.”
CRP employs over 600 personnel across its five plants located in and around Chennai. It clocked a turnover of Rs 60 crore last financial year.