Shivalik Bimetal has signed the MoU with Metalor Technologies International SA (Swiss Corporation) for setting up a Joint Venture in India to manufacture and sale of electrical contacts. Source here.
The Q2Fy24 media release has brief mention of this JV. It says –
Towards a significant strategic move, Shivalik Bimetal Controls Ltd. has embarked on the process of establishing an MoU to assess the feasibility of a joint venture with Metalor, a Tanaka group company, which is a world leader in the field of Precious Metals. Metalor, a renowned Swiss company, is celebrated for its expertise in silver contacts and state-of-the-art silver melting facilities in several locations around the world. Chairman of SBCL, Mr. S.S. Sandhu, shared, “We look forward to exploring a joint strategic partnership with Metalor in India. By conducting a feasibility study, we will assess the value addition this partnership can bring to manufacture and assemble silver contacts. This initiative affirms our commitment to pursue sustainable growth that can open doors to Metalor’s extensive global network. We hope to analyse how Shivalik’s silver contacts segment can be positioned for substantial volume growth through this venture, as we anticipate achieving greater milestones in this segment.”
(Source: https://metalor.com/wp-content/uploads/2020/07/Electrotechnics_Production_flow_Chart.pdf)
One of the most important roles of a management team and board of directors is to reinvest capital at the high rates of return. Is this JV a step in right direction (seems so)? Time will tell.
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