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Mahindra Systech to sell stake in Mahindra Ugine Steel

Steel News - Published on Mon, 13 Dec 2010

ET reported that Mahindra & Mahindra\'s components and engineering services company Mahindra Systech is looking at selling a part of its stake in Mahindra Eugine Steel Company to a strategic partner.

Sources have told ET NOW that Japanese trading company Mitsui is keen on picking up that stake.

Mahindra Systech has however declined to comment on the names of companies it is talking to. It is looking for two kinds of technology partners in MUSCO one for finished products like stainless steel or seamless tubes and the other who can help the company improve the quality of steel.

Mr Hemant Luthra president (Systech) said that “We are looking at both kinds of partners. The one that helps us with finished product is unlikely to want stake in the company. The one who will help us with steel business will certainly be offered a stake but at the right price as the value of the company is much more.”

Apart from MUSCO, Mahindra Systech is also investing up to INR 350 crore in various auto component businesses. It is planning to double its castings capacity with an investment of INR 175 crore. It is also spending INR 150 crore in forgings business and investing INR 75 crore in its gears plant at Pune. Mr Luthra further added that “We are targeting 10% of global market share in turbocharger housings.”

(Sourced from ET)

Posted By : admin on Mon, 13 Dec 2010
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