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12. February 2006

INDIA: Group MKM forms jt venture with Italy's Radici Group

Source: Daily "The Hindu Business Line", New Delhi; 12 Feb 2006

New Delhi , Feb. 11
The MK Modi led conglomerate, Group MKM, has entered
into a joint venture with an Italian company, Radici
Group, to manufacture engineering plastics in the
country.

To be named Radici Plastics Modi P Ltd, the joint
venture is 60 per cent controlled by Radici Plastics,
a Radici Group company, which also holds rights to the
commercial brands.

The joint venture aims to sell polyamide-based
engineering polymers throughout the country as well as
market its products in countries such as Sri Lanka,
Bangladesh, Nepal and Pakistan. The agreement, which
would be purely commercial at the outset, provides for
a local production unit to be started with a
RadiciPlastics licence.

Mr MK Modi, Chairman and Managing Director, Group MKM,
said: "We plan to set up a plant with an initial
estimated investment of Rs 50 crore to manufacture
nylon engineering plastics." The plant would have a
capacity of 3,000 tonnes to begin with, he added.

The company believes that majority of the demand for
engineering plastics would come from the automotive
sector and railways. While most of the raw material
required for railway applications would be imported
initially, the company gradually hopes to manufacture
all the local requirements in the country.

Mr Massimo Cattaneo, Managing Director of Radici
Plastics for Americas and Asia region, said: "The
Indian markets have tremendous untapped potential and
we hope to capitalise on the same through the
association."

The company is targeting an annual turnover of euros
10 million in the next three years, with a combination
of locally produced standard materials and high-range
materials manufactured in Europe.

With an over 1-billion euro turnover, Radici Group is
active in many other spheres besides plastics,
including fibres, textiles, chemicals and machinery.


(Syed Rashid Ali, Karachi, Pakistan)

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