Hindustan Dorr Oliver Limited (HDO), a concern of the Hyderabad-based IVRCL group, proposes to rope in a foreign partner to manufacture high-end equipment mainly for nuclear power, mining and petrochemical sectors.
Engaged in the production of technologically-oriented high-end equipment, HDO is currently in the process of demerging its manufacturing and EPC divisions so as to pave the way for the proposed joint venture.
“We are ready with the required land and looking for a maker of large equipment that could be exported out of India,” HDO vice chairman and chairman of IVRCL, E Sudhir Reddy, told Business Standard.
Reddy said the company had identified 130 acres of land near Pune for this purpose and had already held discussions with two-three companies in this regard.
At present, HDO has manufacturing and fabrication facilities at Ahmedabad in Gujarat and Sheffield in the UK. It intends to set up a third production facility near Pune in collaboration with an international company for establishing a leadership position in manufacturing in the global market.
“With this (proposed joint venture), we will become an international brand,” Reddy said pointing out that many global companies had visited HDO's facility at Vatva in Ahmedabad to source its products.
He said HDO had already entered the nuclear sector and was executing orders from the Nuclear Power Corporation of India, Uranium Corporation of India and Heavy Water Board.
Over the past two years, there had been reports that IVRCL may hive off HDO. “We said that we will sell the company only if get the right price,” Reddy pointed out adding HDO today had manufacturing assets worth over Rs 750 crore.
During 2010-11, HDO posted an income of Rs 960.57 crore and a net profit of Rs 53.76 crore.
