Nitin Fire Protection Industries Ltd has announced their intention of Joint Venture agreement for Cylinder manufacturing business with Worthington Industries Inc. Worthington Industries Inc. will acquire majority shares in Nitin Cylinders Ltd. (NCL). The deal valued at approx. USD 21 million.
Mr. Kunal Shah will be the CEO of the Joint Venture.
NCL is a 100% subsidiary of Nitin Fire Protection Industries Ltd. (NFPIL) and is a part of the Nitin Group of Companies and is one of the largest manufacturer of CNG Cylinders in India in terms of capacity NCL manufactures high pressure seamless steel cylinders ranging from 232 to 406 mm dia, among the broadest range in Asia with applications in compressed natural gas (CNG) storage in motor vehicles and compressed industrial gas.
NCL operates from its manufacturing facility located at Visakhapatnam Special Economic Zone, Andhra Pradesh with an installed capacity of 500,000 cylinders per annum. NCL – sells its cylinders in UAE, Pakistan, Bangladesh, UK and Malaysia and has over 50 national and international approvals and accreditations for its cylinder units.
The partnership will help Nitin Cylinder benefit from the global experience and technical capabilities of Worthington Group and will help the business grow for CNG and Industrial Cylinders domestically and in international markets” – said Mr. Nitin Shah, Chairman of the Nitin Group.
Worthington Cylinders is the world's leading global supplier of Pressure cylinders, which strives to continually deliver solutions to its customers that exceed their expectations in quality, service and value. It's a subsidiary of Worthington Industries Inc., a leading diversified metals manufacturing company with 2010 fiscal year sales of approximately $ 1.9 billion. Worthington employs approximately 6,500 people and operates 65 facilities in 11 countries.
Source: Equity Bulls