IBP, with operations in the petroleum, explosives and cryogenics businesses, has already signed a memorandum of understanding with the international company to improve its business in cryogenics, said SK Khosla, executive director.
He was here as part of the companys roadshow for the governments offer for sale of equity shares. He said that the agreement was yet to be signed with the foreign company.
The cryogenics group is engaged in the manufacture and sale of cryogenic containers for industrial and biological applications at Nashik facility in Maharashtra, which has an annual capacity to manufacture about 17,000 small aluminium containers. The cryogenic products consists of aluminium cryogenic containers, stainless steel industrial cryogenic containers and super insulated pipelines.
The joint venture with the foreign company will help develop new products. As the company is a world leader IBP can look for newer areas in the cryogenics and exports, Mr Khosla said. The MoU has the potential for technology transfer and the focus of the partnership would be on promoting LNG use in heavy vehicles in the country. To assist this move, IBP is doing R&D for developing containers that can transport and transfer LNG. The company is also collaborating with vehicle manufacturers to incorporate technology for use of LNG.
Meanwhile, IBP is also upgrading and expanding its facility and hopes to spend about Rs 2.5 crore during fiscals 2005 and 2006. The facility was accredited with ISO 9001 certification and also upgraded for new certification.