Chennai-based Voltech Group has entered into two joint venture agreements with companies from Kuwait and Zambia for electrical contracting, telecom services and solar power generation.
The joint venture with Kuwait-based Rank General Trading Company (RGTCC) will help the group offer its engineering procurement and construction (EPC) contracts for electrical projects in Kuwait.
The JV would also set up India operations to execute EPC contracts on turnkey basis and to offer services in the domains of networking, telecommunications and security systems solutions. RGTCC would bring in the technology while Voltech would offer its technical manpower, logistics and local support to customers, a statement said.
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The joint venture with Zambia-based Goldberg Associates Ltd (GAL) will build and operate solar-based power plants in Zambia and other African countries, starting with a 10 MW project approved by the Zambia Electricity Supply Corporation (ZESCO).
Voltech expects a faster return on investment from this JV as Zambia offers Rs 12 per unit of power and the contract is for 20 years.
"Based on the 50-50 partnership, Voltech will invest a total of around Rs 120 crore," said the M Umapathi, managing director, Voltech Group. The investment would be from internal accruals and other financial sources, he said.
He added that Voltech's solar panel manufacturing facility, built with an investment of around Rs 20 crore, will be ready in a month. The facility will have 75 MW capacity and the solar panels for the Zambia project would be exported from this unit.
The company expects the joint ventures to bring in around Rs 50 crore of business in the first year, and expand to Rs 400 crore in the next five years.
