India's Ruchi Group has signed a pact with Japanese conglomerate Mitsui to form a joint venture company for setting up steel service centres across the country to cater to automotive, white goods and construction sector.
"Ruchi Group of India and Mitsui & Co, Japan a conglomerate with turnover of over $30 billion, have signed a 50:50 Joint Venture & Shareholders' Agreement in Tokyo recently to form a JV Company in India which will engage in the business of establishing, setting up and operating Steel Service Centres in India," Ruchi Group said in a statement.
The steel service centres would be located near the country’s largest auto hubs with an annual capacity of 100,000 MT for each, which will also offer services/facilities like delivery of non-processed steel coils.
"Mitsui & Co owns and operates about sixty steel service centres across more than 20 countries worldwide; the proposed steel service centre is the first such venture for Mitsui in India," it said.
Mitsui is Japan's one of the largest industrial conglomerate with business interests in metal and mineral products, machinery, electronics, logistics etc. While Ruchi Group has interests in businesses ranging from steel to food products.
The two groups have an existing Joint Venture company in India -- Indian Steel Corporation Ltd -- which is in the process of expanding its cold rolling, galvanising and colour coating capacities at its Gandhidham plant in Gujarat to 6,00,000 MT per annum during this year.
The enhanced capacity will ensure consistent supplies and quality of products to its customer through the proposed service centers, the statment said.
"Initially the JV Company would set up the service centre in Gurgaon and has plans to expand to other regions of India within a span of two years," it said.