National Engineering Industries (NEI), which is part of the $2.4-billion diversified CK Birla Group, and Amsted Seals, on Friday, announced a joint venture (JV) to manufacture railway bearing seals in India, according to a press release. The US-based Amsted Seals provides sealing solutions and metal fabrication.
NEI has a 51 per cent stake while Amstead Seals has a 49 per cent stake in the joint venture, which is already making prototypes and will start production next month, Rohit Saboo, Director, NBC-Brenco, told BusinessLine. With installed capacity of two million seals a year, the company will supply products in India as well as to international markets.
NEI declined to share factory investment details. The joint venture will market products under the brand name NBC-Brenco and plans to add automotive seals and products with metal fabrication in the future.
NEI and Amsted Seals will collaborate to develop a greenfield project in Solitaire Industrial Park Bagru in Jaipur, Rajasthan. Saboo, who is also the CEO of NEI, said in the release: “Our joint venture with Amsted Seals is a significant step towards diversifying our product range and offering complementary products to our customers in railways around the world. We have a very long association with Amsted Rail that dates back over 35 years.”
Michael Carter, Director of NBC-Brenco and President of Amsted Rail Company, said, “We are looking forward to developing localised India seal manufacturing capabilities with our long-time partner NEI. Our newly constructed seal facility in Jaipur, will have the ability to serve both the domestic and world rail seal market.”