Carpenter and Kalyani together will invest around $25 million in the new facility, of which Carpenter will bring in $10 million.

The $1.2-billion Carpenter group and the Rs 188-crore Kalyani Steels joint venture is expected to start producing tool steel here within 60 days, says a note issued by the company. The new venture, Kalyani Carpenter Special Steels, has bought out the existing alloy-steel manufacturing facility of Kalyani Steels in Pune.

Carpenter will hold 26 per cent in the joint venture, while Kalyani Steels will hold 74 per cent. Baba N Kalyani will be the chairman of the joint venture. The venture will be upgraded and additional finishing facilities will be installed to produce speciality steels including stainless, tool and valvesteel.

Carpenter will transfer technology to the venture in exchange of royalties. Investments will be made in a phased manner in the manufacturing project.

Another company Kalyani Carpenter Metal Centres Ltd has been promoted as a speciality steel distribution company. Carpenter has 51 per cent and Kalyani holds 49 per cent in this company which will have Carpenter executive, A Steward Dunford, as its managing director.

The new company has started operations from Pune and in the next few years, it will establish distribution service centres in major steel consuming areas of the country. Through this venture, Carpenter will service both the Indian and global markets. Speciality steels made by the manufacturing venture will be exported through Carpenter's distribution companies.