Shares in JV Global Ltd have shot up almost 27 per cent after its wholly owned subsidiary, JV Global (Australia) Pty Ltd, signed a formal joint venture agreement with India's Shapoorji Pallonji Group.
At market close, shares in the company were at 19 cents.
The previously announced negotiations with the Shapoorji Pallonji Group were successfully concluded with JV Global (Australia) Pty Ltd acquiring a 40 per cent shareholding in Sharus Steel Products Pty Ltd, with the Shapoorji Pallonji Group holding the remaining 60 per cent.
Sharus Steel Products Pty Ltd will produce a wide and varied range of steel building products with the initial facility in Mumbai producing Steel Door and Window Frames. A significant proportion of the steel door and window frames will be utilised by Shapoorji Pallonji in their own projects. One such project is the construction of 20,000 houses, which would utilise the annual production of one shift of the manufacturing plant. Future expansion plans include manufacturing facilities in Chennai, Delhi, Bangalore, Hyderabad and Kolkata.
Shapoorji Pallonji is one of India's premier companies executing its first contract in 1865 and was the first Indian construction company to secure production quality assurance through ISO-9001 Certification. They are a large and diversified industrial conglomerate whose holdings include interests in construction, IT, healthcare, pharmaceuticals, water-treatment, power, manufacturing, infrastructure and transport.
Shapoorji Pallonji has constructed some of the regions most notable buildings and they are currently constructing the tallest residential towers in India. The "Twin Towers Project" has two residential towers each of 60 storeys.
Other projects completed include: The Reserve Bank of India, The Taj Mahal Gateway Hotel, The Taj Intercontinental and Oberoi Towers Hotel (Mumbai), The World Trade Centre (Mumbai), Bank of India (Mumbai), Citibank Mumbai, Indira Gandhi International Airport (New Delhi), the Palace for His Majesty the Sultan of Oman in Muscat and many other prestigious projects.
It is envisaged that the manufacturing of the CNC roll-forming production machinery will commence in late April 2006, with production to commence in the 4th quarter of 2006.
Initial studies revealed the market for steel doorframes in India is in excess of 100 million door frames over the next five years.
