New Zealand-based SPL Ltd, engaged in manufacturing and marketing of hand dryers, will introduce its products in India in partnership with city-based Mrinalini Industries according to a report in Business Standard.
The joint venture agreement would be of 'knowledge sharing' for SPL Ltd, while its Indian partner will manufacture the hand dryers at its factory in Irungattukottai near Chennai, SPL's Founder and Managing Director John Stares said here today.
"It is a first of its kind initiative. The New Zealand government wants to promote trade and industry with India. So through this joint venture, we will be selling hand dryers domestically that are locally produced. Right now, what is available in the market are imported," he told PTI.
Under the agreement, the hand dryers will be of 60 per cent localisation, which would be increased to 100 per cent later.
The company, with revenues of NZD 3 million, will not have any stake in the JV and the tie-up is with the Centre's 'Make in India' initiative, he said.
Commenting on the investment plans, Mrinalini Industries Managing Partner R Elansudar said it would be about Rs 4 crore.
"Initial investment we made so far is about Rs 1 crore. We will be investing about Rs 4 crore. It will be done in stages. The plant will come up inside our existing factory at Irungattukottai," he said.
The hand dryer -- ELAN HD101 -- will be priced at Rs 8,500 in Tamil Nadu, he said.
The factory will have the capacity to produce 2,000 units per month initially, he said, adding the company plans to scale it up to 40,000 units.
Officials of the companies exchanged documents as part of the agreement at a function here in the presence of Honorary Consul of New Zealand, L Ganesh.
Ganesh, who is also chairman of Rane Group, said trade between India and New Zealand shot up by 46 per cent to reach USD 1.8 billion year last year.
"The trade between India and New Zealand is increasing rapidly. The two-way trade went up by 46 per cent to USD 1.8 billion last year, compared to what it was five years ago," he said.
