In a bid to foray into critical expansion bellows for oil refineries, Vadodara-based Flexican Bellows is planning to raise money by diluting the promoters' stake in the company. The company is in talks with international and domestic bellows manufacturing companies for diluting its stake.
"We are already manufacturing several types of metallic bellows expansion joints but we intend to foray into critical expansion bellows, technology for which is available only with companies in the US and Europe. Hence, we intend to dilute equity stake of the promoters to one of such companies", said, Ashok Parikh, chairman and managing director, Flexican Bellows.
"The company is in talks with at least two international companies from USA and Italy, apart from 3-4 Indian companies for strategic tie-up by divesting equity," added Sanjeev Shah, a Vadodara-based investment banker and owner of Shah Sanjeev & Associates.The company has already acquired 30 acre land at Karjan, near Vadodara for setting up the critical expansion bellows manufacturing plant. Once set up, the company plans to market its product internationally, including oil refineries in Middle East and Africa.
A 21 year old company, Flexican Bellows was set up in technical collaboration with Flex-weld, USA and Pathways, USA. The company is in business of manufacturing of all types of metallic bellows expansion joints and related engineering goods. Any industry using pipeline or large diameter ducting for conveying water, steam and gas and where expansion and/or contraction takes place can not operate without using bellows expansion joints.The company already supplies bellows to thermal and nuclear power plants etc. Having pegged a turnover of Rs 17 crore for the financial year 2009-10, the company expects a revenue of Rs 50 crore in next two years.
