Carlos Stelin of Mustad Hoofcare told a press conference here on Saturday, "We have signed the agreement just two days back and have identified the location at the FEPZ." This is the second production utility of the group in Asia, the first one being at Istanbul in Turkey.

The company will be manufacturing horseshoe nails. The international marketing of the products will be handled by Mustad Hoofcare from Switzerland. The company controls around 70 per cent of the 7,000-tonne horseshoe nails market worldwide. The initial project cost is Rs 3.5 crore and the company plans to progressively increase the total investment to Rs 7.5 crore. Mustad Hoofcare will hold an 80 per cent stake in the Mustad India Manufacturing Ltdand the rest will be held by Atherton Engineering.

The machines of the plant will be imported from Switzerland as the Mustad group itself manufactures them. The utility is expected to start production within two to three months. Says Stelin, "It is remarkable that we will be able to start production so fast. In fact, in other locations it could have taken six months."

The Mustad group is looking to expand its markets and is looking at the Asian and the East European markets. "These markets are virtually unknown quantities for us and we are going to market our products in these areas in the near future." Around 20-25 per cent of the horseshoe nails to be produced at the Falta factory will be sold in India according to guidelines.

Atherton Engineering will be handling the marketing in India.Atherton Engineering is involved in aircraft parts, aquaculture, distribution of consumer products, exports of steel wires and polyester ropes. The company reported a turnover of Rs 22 crore for 1997-98.