Date:17/11/2007 URL: http://www.thehindubusinessline.com/2007/11/17/stories/2007111752160300.htm

Back Malaysian co, Kamineni Group float jt venture

Our Bureau

Hyderabad, Nov. 16

UMW Holdings Berhad – Oil and Gas, a Malaysian firm, and Hyderabad-based Kamineni Group have floated a joint venture to manufacture seamless pipes to cater to the needs of oil and gas exploration and production sector.

The joint venture, christened as United Seamless Tubulaar Pvt Ltd, will be setting up a manufacturing unit at Narkatpally in Nalgonda district of Andhra Pradesh with an investment of Rs 565 crore, Mr K. Sridhar, Director, United Seamless Tubulaar, told newspersons, on the sidelines of foundation stone laying ceremony of the project on Friday.

“About Rs 140 crore will be mobilised through private equity while debt will pool in the rest of the funds,” he said.

Mr Asmat Kamaludin, Group Chairman, UMW Holdings, said the company would invest $50 million in the joint venture.

“The oil and gas exploration sector in India is very attractive and we see lot of scope for mutual collaboration,” he said. The UMW Group clocked $2.8 billion in 2006, he added.

According to Mr Sridhar, the manufacturing unit of United Seamless would be operational over next two years with an installed capacity of three lakh tonnes per annum. “We will export 50 per cent of the production to Africa and Middle East and the remaining will be for domestic market,” he said.

Later, Mr S. Jaipal Reddy, Union Minister for Urban Development, formally laid the foundation stone for the project.