One of India's largest plastics equipment makers, Kabra Extrusiontechnik Ltd., and Penta srl, a unit of Italy's Piovan SpA, are forming a joint venture to manufacture automated material feeding systems.
Mumbai-based Kabra disclosed the investment in a June 28 announcement to the BSE Stock Exchange in India, and said each company would have a 50 percent stake in the new company, called Penta Systems India Ltd.
No investment details were given, but Kabra said the joint venture would set up a factory for manufacturing and trading at an unspecified location in India. Kabra said the venture would also let it tap the food processing industry, since Penta sells its equipment to both plastics companies and food processors.
Kabra said this is the first time Piovan has formed a joint venture company worldwide, since it operates through wholly-owned subsidiaries elsewhere.
Piovan has seven production facilities, 24 subsidiaries and 70 distributors worldwide. It is based in Santa Maria di Sala, Italy.
Piovan in January bought a majority stake in Penta, which is based in Poggio Renatico, Ferrara, Italy. Within the plastics industry, Penta targets PVC dry blend manufacturing and compounding.
Executives at Piovan's Indian subsidiary told Plastics News last year that the company planned to start assembly some of its equipment in India by the end of 2014.