Todays Writing subsidiary Today's Petrotech ties up with ITT Corporation

Todays Writing Products Ltd has announced that Today's Petrotech Ltd (TPL), a subsidiary of the Company announced the setting up of its first facility in a tie-up with ITT Corporation (NYSE:ITT), a USD 7.8 billion global multi-industry Company that has businesses in Fluid Technology, Motion & Flow Control and Defense. It also represents ITT's first investment in India. The facility is being set up for their Fluid Technology group who, at $ 2.8 billion, are the largest pump Company in the world and a leader in the water and waste water market.

ITT Leading brands are very popular globally and in India. The Fluid Transport brands are Goulds, Bell & Gosset, Lowara, Flygt, Allis Chamber, Pumpstart, etc whereas the Fluid Treatment brands are Sanitaire, Wedeco, Leopold, etc.

The facility, located in Vadodara, Gujarat, is being set up with an initial investment of Rs 30 crore. The project will be commissioned in March 2008. The current facility can service business of upto Rs 250 crores annually. The facility will be making some core products for two of three divisions of the Fluid Technology Group and will be expanded as more product lines are bought into India and more divisions plan to invest in India. The facility will also expand with the growth of the Indian market.

The facility is an integral part of ITT's plans to enter the Indian market. ITT India will source certain components from the TPL's facility on an exclusive basis. The facility includes a USD 1.5 million dollar testing facility that will test various pumps, including pumps that are supplied to all process industries (especially oil & gas) and Building Services. In addition, it includes a machine shop with state of the art fully automated machinery. In this facility, TPL personnel will manage the machine shop and ITT personnel will manage the pump engineering, assembly and testing facility.

In addition, TPL will also distribute all products manufactured/imported by ITT India for the process industry.

"Today's Petrotech, through the joint initiative with ITT, plans to emerge as a dominant player in products and services for the oil & gas sector in India, in addition to tapping huge opportunities from ITT's global outsourcing business", said Ronaldnetto, Director, of the Company.

TPL has also recently concluded an exclusive 50: 50 JV with Wellco Oil of Norway for the Indian market. Wellco Oil will provide the technology for the purpose of facilitating enhanced Oil recovery from Oil Wells through their patented microbial enzymatic technology, which been proved in many fields the world over. The SPV with Wellco will endeavor to obtain various oil fields from Oil producing Companies and enter into production sharing arrangements.

Source : Equity Bulls

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