Chinese cement equipment firm buys stake in LNV Tech
Sinoma International Engineering (Hong Kong), a part of the Chinese State-run National Materials Group Corporation, has entered the Indian cement equipment industry by acquiring a majority stake in Chennai-based equipment manufacturer LNV Technology. Sinoma International has 80 per cent market share in the cement equipment industry in China.
It bought 68 per cent stake in LNV Technology for Rs 130 crore. The rest of the share in the joint venture is held by VC Rao, Managing Director of the company, and LV Technology. VC Rao had around 51 per cent equity share in the company before the deal. The Chinese firm would provide LNV expertise in research and design, manufacturing, installation and after sales service, says Liu Zhijiang, group Chairman, China National Materials Group Corporation (Sinoma).
He says a partnership with LNTV will help it serve its Indian clients better. The company would gradually introduce a brand new business model for the local cement plant owners, he adds.