KLR Inds in JV with EDI of Germany

Hyderabad-based KLR Industries Limited and Exploration Drilling International GmbH ('EDI') of Germany have formed a joint venture company called Ready Tech International (RTI) for participating in global tenders for exploration of minerals, water, oil and gas.

EDI, a public listed company in Germany and the US, sells, deploys and maintains tools for well analysis used during the drilling process while KLR is engaged in production of drilling equipment and rigs. EDI has a 74 per cent stake in the joint venture and the remaining 26 per cent is held by KLR.

"RTI will be registered in Switzerland," KLR chairman and managing director, K Laxma Reddy, told Business Standard, adding that $50 million would be invested in the company over a period of three years.

During the first phase, an investment of $15 million would be made in the joint venture, which is expected to be operational by next fiscal.

He said that KLR was also setting up a unit in the Hamriyah Free Zone in Sharjah at a cost Rs 5 crore for undertaking oil and gas exploration activities.

This apart, he said, the company would be opening its own drilling outfits by the end of this year in Ghana, Uganda, Tanzania, Ethiopia and Qatar.

The company was also firming up as many as 20 joint venture agreements for setting up drilling outfits in African countries where many borewells were being drilled for irrigation and drinking water purposes.

Following the establishment of joint ventures, KLR was expecting assured business for its equipment, accessories, tools and spares. Possible replacement of refurbished rigs with the company's new equipment two years down the line was also anticipated, Reddy said.