Business   

TELK joint venture set to attain fruition

KOCHI: The running of Transformers and Electricals Kerala Ltd. (TELK), Angamaly, as a joint venture of the State government and NTPC will start on Tuesday. Industries Minister Elamaram Karim will launch the operations.

The joint venture envisages expansion of the company at a cost of Rs.188.65 crore in three phases, according to S. Venkiteswaran, Managing Director, TELK.

The first phase, for augmentation, involving an investment of Rs. 48.25 crore, will be completed within 12 months.

The capacity will be augmented to 12000 MVA from the installed 4500 MVA.

The second and third stages will have investments of Rs.112.4 crore and Rs. 28 crore, respectively.

The company achieved a record sales turnover of Rs.220 crore, exports of Rs. 77 crore and an operational profit of Rs.36.14 crore during 2008-09. Accumulated losses had been wiped out.

Joining hands with NTPC, a Navratna Central public sector undertaking and globally reputable power utility, will enable TELK to transform itself into a strong player in the power equipment industry, Mr. Venkiteswaran said.

With growing investments in the power sector, the transformer industry in India has a bright future, he said.

The concept of joint ventures between Central and State public sector undertakings was first conceived for TELK, which had been recommended for winding up under the BIFR (Board for Industrial and Financial Reconstruction) regulations because of accumulated losses.

The business collaboration agreement was signed two years ago. Over 44 per cent of the shares of the State government have been transferred to NTPC.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Infosys confident of emerging stronger
UCBs asked to charge less for exporters
Anti-dumping duty on Vitamin-C from China
CII to set up business forum in U.K.
TELK joint venture set to attain fruition
LG launches new technology products

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu