Pooja Heatex forms Rs. 350-cr joint venture with German co.

Surat-based Pooja Heatex has joined hands with German-based Funke Warmeaustauscher Apparatebau GmbH to manufacture a wide range of plate, shell and tube-type heat exchangers used for various applications in different industries.

Funke plans to invest about $50 million (Rs 350 crore) in the joint venture company Funke Heatex India.

To start with, Funke intends to manufacture heat exchangers for process equipment at Pooja Heatex factory in Surat and supply to its existing customers in India, South Asia, West Asia, Africa and both North and South America. Some of the employees of the joint venture company will undergo training at Funke facility in Germany.

The new joint venture targets sales revenue of over $75 million (Rs 495 crore) in India and $150 million (Rs 990 crore) from exports over five years.

Addressing presspersons in Mumbai, Arpan Patel, Managing Director, Pooja Heatex Engineering, said the joint venture will bring in a range of international customers to the company and help to have an edge over competitors.

Bernd Timmermann, President, Funke Warmeaustauscher Apparatebau GmbH, said the joint venture company would address the requirements of South Asian customers and meet the high quality requirements of European companies.

The deal was structured by Alcor Mergers and Acquisitions, a portfolio company of Alcor Fund, which has seen a huge flow of transactions after the ‘Make in India’ campaign by Prime Minister Narendra Modi.

HBL