Coimbatore-based textile machinery maker Lakshmi Machine Works (LMW) has decided to buy out its JV partner in Rieter-LMW Machinery (a 50:50 JV between LMW and Rieter of Switzerland). This follows Rieter?s decision to sell its holding of 50% shares in the joint venture (RLM) to LMW. The board of directors of LMW at its meeting held on Friday, after considering various aspects, have decided to accept the offer of Rieter.
Rieter signed the contract for selling its entire holding in the JV to LMW on Friday.
The value of shares will be determined as on June 30, 2011. Once the process of disinvestment by Rieter is complete, RLM will become a wholly owned subsidiary of our company, said LMW. Rieter-LMW Machinery is a 100% export oriented unit for Rieter ring frame assemblies.
Due to the changes in the market conditions in India the partners have agreed to concentrate on their own strength. Rieter has also set up a manufacturing facility in Pune, Maharashtra for manufacturing and marketing of ring spinning frames for the Indian market.
