Indian, Italian Firms Form Joint Venture to Build Equipment in India

Puzzolana Group, an India-based manufacturer of crushing, screening and bulk material handling systems, has signed a memorandum of understanding with Guidetti Recycling Systems, based in Italy, to incorporate a joint venture company – Puzzolana-Guidetti.

The joint venture will manufacture earth moving equipment, including pavers, compactors and graders using Guidetti’s technology at Puzzolana’s plant near Hyderabad, India. Puzzolana will hold 80 percent stake in the JV, with the remainder held by Guidetti.

The cost to build the new manufacturing facility is estimated to cost around $5 million, and is scaled to produce a maximum of 1,200 units per year. The joint venture company will roll out the first set of models from this plant by this November, with the facility at full capacity by February, 2011, according to a report by India’s Business Standard.

The products will be marketed in both Europe and India, with expectations that the joint venture will expand its marketing reach globally.