Pune-based Rochi Engineers has signed a joint venture agreement (JV) with Germany's PURItech global supplier of diesel emission control products and filter cleaning devices. The JV was structured by ALCOR M&A team part of ALCOR Fund. The JV was signed by Pradeep Kharkar, CEO, Rochi Engineers and Bernhard Kahlert, Managing Director, PURItech GmbH & Co.KG.
The company is investing over Rs 55 crore in the new facility for a manufacturing capacity of 200,000 units per annum. As of now, Rochi is targeting only global markets like Europe, Russia, Singapore and North America. The labour and overhead costs in India are much cheaper almost close to 30 per cent as compare to Germany or any other European country. The JV company will set up an R&D centre and manufacturing facility in Pune which is expected to be completed by 2014 and would design and manufacture emission control systems for diesel engines.
The products are expected to serve the first-fit and retro-fit markets for on-road, off-road vehicles and power gen-set industry in India and abroad. In the on-road, category the company would cater to medium to heavy trucks, city and inter-btate buses and will tap all the auto majors like OEMs.
Speaking on the occasion, Pradeep Kharkar, CEO, Rochi Engineers said “We are excited about our association with PURItech. The new JV combines the strong brand, long term experience and ethical values of both the companies and would deliver quality products to sell globally. We wish to serve global customers with advanced technology and low cost manufacturing.”
Commenting on this, Bernhard Kahlert, CEO, PURItech GmbH & Co.KG, said, "Pune is an ideal location to set up our new plant because the city provides a strong infrastructure and a rich talent pool of skilled workforce in the automotive sector. Diesel fumes are affecting the human life and can cause cancer, hence it is necessary to control emissions and give cleaner to air for future generations."