India/China: Sinoma International Engineering (Hong Kong) Co Ltd, part of the National Materials Group (Sinoma), has entered the Indian cement equipment production industry with the acquisition of a major stake in LNV Technology Pvt Ltd, based in Chennai, India for US$23.9m.
According to the agreement, Sinoma International Engineering now has a 68% share in LNV Technology, which has become a member of the Sinoma Group. The earlier joint venture partners V C Rao, managing director of the company and LV Technology Public Co Ltd, retain around 16% equity each. Liu Zhijiang, group chairman of Sinoma said that the Chinese firm would bring in its expertise in research and development, design, manufacturing, installation and after sales service to the Indian joint venture. With the venture, LNV Technology expects to be the leading supplier of cement equipment in India in the next five years.
Rao said that LNV Technology would look at setting up engineering, procurement and construction (EPC) capabilities, which are not prevalent in the Indian cement equipment industry. "Sinoma is the only company in the world to do this kind of EPC in the segment. That model is not available in India now, which will be brought in through LNV Technology," he said. Globally 80% of the cement equipment market is cornered by just four companies: Sinoma International, FLSmidth, Polysius AG and KHD.
