Indo National-led Kineco Group and Exel Composites sign JV in Goa-India

Kineco Group will sell the assets of its pultrusion business into a new company, Kineco Exel Composites India.

Oct 14, 2021 03:10 IST India Infoline News Service

Indo National Ltd's material subsidiary Kineco Group, India’s leading player in the Advanced Composites market has announced today that it has signed an agreement to establish a joint venture to develop the Indian pultrusion market together with Exel Composites Oyj, a Nasdaq Helsinki listed, globally recognized composites company.

Established in 1995 and headquartered in Goa, Kineco Group offers a range of products and integrated systems for diverse markets such as mass transit, aerospace, defense, infrastructure and other industries.

In the transaction, Kineco Group will sell the assets of its pultrusion business into a new company, Kineco Exel Composites India, in which Exel Composites will subscribe to a 55% ownership in a directed share issue. Kineco Group will remain a shareholder with a 45% shareholding through its main entity Kineco Limited.

The new joint venture Kineco Exel Composites India (www.kinecoexelindia.com) targets growing the pultrusion business in India. The joint venture seeks significant business growth especially in the large and growing industries such as wind power, transportation and telecommunications. The joint venture will continue to operate from the existing manufacturing facility located in Goa.

“Kineco is happy to be the partner of choice for a leading global company such as Exel, who has decided to invest in India. Exel’s technological expertise and composites know-how particularly, in pultrusion, will enable bringing our own, more recent pultrusion business to the next level. Our previous strategic long-term partnerships with international partners have been extremely successful and we look forward to extending this success story to Exel JV.

We welcome Exel to India and look forward to growing our pultrusion business together while at the same time, creating long term value for the shareholders of both the Companies”, says Shekhar Sardessai, Founder and Managing Director of Kineco Group and Managing Director of Kineco Exel Composites India.

Further commenting on the occasion, Aditya Reddy, Chairman of the Board of Directors of Kineco and Joint Managing Director, Indo-National Ltd. (a majority shareholder in Kineco) said, “I congratulate the management teams of Kineco and Exel on this partnership. Indo-National invested in Kineco in 2015 and since then, we are fully aligned with Kineco’s vision to be a technologically differentiated player in the Composites business and our joint venture with Exel reinforces this vision. We look forward to a mutually rewarding relationship with them in times to come.

“This strategic investment provides Exel with direct presence in the fast-growing Indian composites market. Kineco Group’s long and established position in the Indian composites industry allows us to expand into India with a ‘flying start’. The investment fits Exel’s strategy and growth initiatives well, and clearly strengthens our competitive position towards current and new customers. We are looking forward to joining forces with the committed local team and boosting our future presence in India”, says Riku Kytömäki, President and CEO of Exel Composites.

On Thursday, Indo National ended at Rs1038.75 apiece down by 0.16% on Sensex.

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