Godrej and Boyce hives off storage-solutions business
Nithya Krishnaswamy
CHENNAI, January 13: The 700-crore Godrej and Boyce Manufacturing Ltd has hived off its storage solutions business into a separateventure in asssociation with the Belgium-based Stow Storage Solutions Ltd. The new company has been christened Godrej Stow Storage Solutions Ltd.The manufacturing unit for storage components, groundwork for which is scheduled to begin by the month-end, will be set up in Ambattur, Chennai. Godrej hopes to commence commercial production by December 1998. Until now, the components were being manufactured at the Storewell plant in Mumbai. This company will continue to service clients through all the Godrej and Boyce offices in the country. Godrej and Boyce managing director Jamshyd Godrej said: "We decided to spin off the storage solutions activity into a separate business because we think it is a growing field which needs focus. "The storage solution business was part of the Godrej and Boyce office equipment division, which has a turnover of Rs 350 crore. The storage businessdeals with manufacturing industrial storage system components, which includes plastic accessories, pellets and other storage components, designing auto storage solutions like position, packing, retrieval. This would be for industrial sectors like automobiles, auto components, paper and tobacco. The new company will have an equity base of Rs 35 crore and will be a subsidiary of Godrej and Boyce. Though Godrej refused to disclose the equity committment of the two partners, he said Stow would have a minority stake, while Godrej and Boyce will hold the majority stake.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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