Mumbai, Aug 8: Godrej & Boyce has formed a 50:50 joint venture with a $60 million Belgian firm, Stow International, for storage solutions. The joint venture will be implemented through the company's office equipment (OE) division and is expected to kick off operations shortly.

According to Godrej & Boyce (OE division) executive director and president PDF Lam, the joint venture, set up on an equity base of around $6 million, will be commissioned in Chennai where the company has its own property. The storage solutions will cater to the automobile industry.

The new company plans to achieve a turnover of up to Rs 100 crore in five years said Lam. The joint venture will benefit from the growing automobile activity in the south where many automobile majors have set up base.

Before the plant goes on stream, the joint venture will kick-start its marketing activities in India. According to Lam, the company plans to eventually scale down operations of the existing storage solutions business in the OE division and transfer the distribution facilities to the new company. With a good market for storage solutions in India, Stow International is keen on supplying technology and produce sophisticated storage solutions. The company will also tap the export market for the product.

The OE division has four distinct businesses: security equipment, storwel cupboards, office furniture and industrial systems and workshop equipment. In office storage systems, Godrej offers a range of storwels, sliding door units, filing systems, book cases and stacks and office compactors. In office furniture, Godrej & Boyce (through the OE division) already has a strategic alliance with Steelcase of the US. The company cannot enter into an equity participation in this sector as it is reserved for the small scale sector.

The 50-year-old OE division is also involved in the manufacturing of open plan office systems.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.