Greenply Industries Ltd, a manufacturer of plywood and allied products, on Monday, to enter into a joint venture agreement with Samet BV for manufacturing and selling functional furniture hardware, the company said in a statement.
Greenply Industries will invest an amount of approximately Rs 34 crore in the joint venture over a period of the next four years. The board also approved the incorporation of a JV company Greenply Samet India Private Limited, the company said in a statement.
In a filing with the stock exchanges, Greenply Industries said, “The Board of Directors of Greenply Industries Limited, at its meeting held today, accorded their consent to enter into a Joint Venture agreement with SAMET B.V., a company duly incorporated under the laws of Netherlands and having its registered office at Weesperstraat 61, 1018 VN, Amsterdam, the Netherlands, for manufacturing and selling functional furniture hardware such as slide systems for wooden and metallic drawers, hinge systems, lift-up systems and other connection fittings etc. through a manufacturing facility in India.”
The said JV Company to be incorporated shall be on an equal shareholding basis (1:1) as a private limited company in accordance with Indian law.
The objective of this joint venture agreement is to determine and implement the terms and conditions of the JV Company which shall be engaged in the business of manufacturing and selling functional furniture hardware such as slide systems for wooden and metallic drawers, hinge systems, lift-up systems, and other connection fittings etc. through a manufacturing facility in India.
Equity shares of Rs 10 each will be issued to each JV partners in equal proportion, the company said in a filing with the stock exchanges.
The board of directors of the JV Company shall consist of 4 (four) members (‘Directors’) where Samet shall nominate 2 (two) Directors (‘Samet Directors’) and Greenply shall nominate 2 (two) Directors (‘Greenply Directors’). There is an equal right to share subscription in case of issuance of shares and none of the JV Partners have the right to restrict any change in capital structure, the statement added. www.business-standard.com