Ratan To Steer Jindal Global ForayPublished by MAC on 2006-02-21
Source: The Business Standard ()
Ratan to steer Jindal global foray
by The Business Standard
21st February 2006
In what is seen as Jindal Stainless' "first step in looking out for global opportunities", Ratan Jindal, vice-chairman and managing director, is set to head the company's newly formed subsidiaries in Dubai and London.
The company has already formed a wholly owned subsidiary in London which will be called Jindal Stainless UK.
The Dubai-based subsidiary, to be set up within three weeks, will be called Jindal Stainless FZE. Ratan Jindal will be the CEO of both subsidiaries.
"He will continue to head the Indian operations. But as the company draws its overseas plans, Ratan Jindal has agreed to look after the affairs of both the UK and Dubai subsidiaries. Already he is spending considerable amount of time travelling between the locations," said Arvind Parekh, director, finance. But he added that Jindal won't be "shifting to these new bases".
The subsidiaries are part of the company's long-term plans.
"Through the subsidiaries we want to explore global opportunities for expansion. We are eyeing the markets but we need to have our own infrastructure in place before we start anything. We are also looking into other synergies including marketing and tie-ups with foreign firms," said Parekh. He agreed that the company is looking at acquisitions for growth but said "it is too early to comment".
The west Asian market, which is seeing a construction boom, is emerging as an important market for Jindal's steel products.
Europe is also an important market for finished steel products, besides being a raw material hub. Jindal Stainless sources raw material from European countries including Russia.
In a statement to the Bombay Stock Exchange today, the company stated that it is taking steps "to enable Ratan Jindal to take over the responsibilities and obtain necessary approvals and permits under the applicable laws of the UK and Dubai respectively.
Upon receipt of all necessary approvals he will become a non-resident Indian under the Foreign Exchange Management Act, 1999."