Runaya will hold a 49% stake in the joint venture, while Minova will own the remaining stake
Runaya will hold 49% stake in the new joint venture. (Credit: Alex Banner from Pixabay)
Indian metals firm Runaya Metsource has formed a joint venture with Minova International, a subsidiary of Australia’s Orica, to manufacture advanced technology solutions for infrastructure and mining sectors.
Runaya is a metals start-up established by sons of metals and mining major Vedanta’s vice-chairman Navin Agarwal.
Runaya will hold a 49% stake in the joint venture while the remaining will be held by Minova.
Minova chairman Naivedya Agarwal was reported by India’s Business Standard as saying that the joint venture will invest about INR2.5bn ($33.42m) to build a new manufacturing facility at Bhilwara in Rajasthan, India.
New manufacturing facility to create nearly 2,000 direct and indirect jobs
Expected to create nearly 2,000 direct and indirect jobs, the facility is planned to commence production in January next year.
Runaya Metsource CEO and MRPL chairman Naivedya Agarwal was quoted by Press Trust of India (PTI) as saying: “Runaya”s strategy is to develop businesses focusing broadly on material sciences, and manufacture products with high technology applications through alliances and partnerships with global leaders.”
The new facility will be equipped to manufacture products such as rock bolts, resin capsules, injection chemicals, wire mesh and ventilation systems for both domestic and export markets.
Minova International president Hugh Pelham said: “For Minova, this joint venture is a key step in the execution of our global growth strategy.
“Our aim is that this plant will not just cater to Indian demand with locally manufactured products, but also enable us to supply our ground support products to other key global markets from this newly established location.”
Last year, Vedanta said it has secured 10 exploration blocks in sedimentary basins throughout India, through the Indian Open Acreage Licensing Policy (OALP) at a total bid cost of $245m (£195m).