NG group hunts for JV partner, again; buys back stake from Kalpataru
Ahmedabad-based battery run two-wheeler manufacturer, Electrotherm (India) Limited, has pulled out of the upcoming Gallops special economic zone (SEZ) that is being developed by NG Realty, a group company of NG Corporation. Citing reasons for the pull out, Electrotherm has stated that work on the SEZ project was being delayed, thereby affecting its own plans.
Electrotherm was aiming to set up a coin minting unit in the notified SEZ for an investment of Rs 100 crore.
"We have pulled out of the Gallops SEZ and are evaluating a few other options for coin minting plant. Work on the project was not being expedited by the developers and it had been impacting our plans adversely," said Shailesh Bhandari, managing director of Electrotherm (India) Limited.
However, according to NG Patel, chairman of NG Corporation, construction work on the SEZ project is on full swing.
"We have started work on the SEZ project. However, Electrotherm have pulled out of it. Had Electrotherm continued, it would have been the first player to commission its plant in the SEZ. Nevertheless, other players like Gujarat Apollo and Lubi Group are going ahead with their plans of setting up facilities in Gallops SEZ," he said.
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Meanwhile, NG Group is once again scouting for a partner too.
After a failed attempt with Atlanta group, the developer was in advanced talks with Kalpataru Group for a 50:50 JV. The deal failed to materialise. "Kalpataru had bought stake in the project for Rs 15 crore but we had to buy it out again since they were going through certain financial turmoil. We are, therefore, now looking for some other partners for the SEZ project," Patel added.
Spread across an area of 575 acres and located near Ahmedabad, Gallops SEZ entails an investment of about Rs 1,000 crore and intends to create an employment opportunity for over 10,000 persons directly or indirectly.
Apart from Gujarat Apollo, NG Corporation is also in talks with companies like Supernova, AIA Engineering, Mamta Energy and Harsha Engineering for setting up facilities in the SEZ.