Tyco plans to set up anti-corrosion plant

Mauritius-based investment vehicle seeks FIPB approval

Tyco group, world's largest supplier of passive electronic components, plans to set up an anti-corrosion manufacturing company in India. The move, subject to necessary approvals, will mark Tyco's second venture in the country in almost the same field, first being a joint venture with the RPG Enterprises, christened Raychem RPG Ltd.

Tyco Asia Investments, the Mauritius-based investment vehicle that promotes Tyco group's operations in India, Sri Lanka and China, has sought the Foreign Investment Promotion Board's approval for the company.

Sources close to the development said Tyco Asia Investments had received no-objection from Raychem RPG, in which Tyco holds a 50 per cent stake, for the proposed venture.

The no-objection was required as the proposed company would manufacture and sell products somewhat similar to that of Raychem RPG.

The new company proposes to manufacture specially formulated and products designed for corrosion protection of steel and iron pipes.

"These products are not identical to the products of Raychem RPG," sources said.

Raychem RPG manufactures heat shrinkable plastic products for electrical power, wire and cabling operations.

The location of the new company is not finalised yet. "Look out for a suitable location in different states in on," sources said.

Fox Mandal & Co, a solicitors firm, is the legal advisor to Tyco Asia Investments.

Sources said the move was aimed at tapping the huge potential of the anti-corrosion market in India. The company will engage in production and sale of all types of anti-corrosion coatings and preparations, primarily used to protect oil, gas and water pipelines and storage tanks.

It is also believed that the Indian operation may export to the Middle East markets which are estimated to be around $30 billion.