The Bangalore-based Bhoruka Group, which has interests in alternative power generation, aluminium and speciality gases, is looking for a major joint venture partner in the US for its gases division and an increase in operating profits as part of future developments.
The company has for some time, it is thought, only been recording marginal profits in the gases division despite its presence across India and a joint venture is sought through its gases business, Bhoruka Gases Ltd.
SN Agarwal, chairman of the Bhoruka Group, said, “The market is very competitive and we expect to stabilise our presence by next year when the joint venture will be in place.”
Bhoruka Gases currently manufactures ultra-high purity gases including argon, hydrogen, nitrogen and oxygen, as well as manufacturing all types of gas mixtures such as an argon-oxygen mix, argon-carbon dioxide mix, argon-hydrogen mix, and a nitrogen-hydrogen mixture. Through the manufacture of high purity oxygen, the company also has a branch into the medical gases sector.
Agarwal noted that any joint venture would be a technology sharing tie-up, under which the company would be sourcing the expertise for the manufacture of high-end specialty gases in the country.
“These gases would be used in various electronic instrumentations which are currently in high demand in the country,” he said.
Bhoruka Gases has apparently been in negotiations with several US companies in recent months and it may require another 3 months to finalise the terms and conditions, with Agarwal indicating that once a joint venture occurs Bhoruka Gases may invest close to Rs 25 crore for expansion of its facility in Bangalore.
Currently, the company has its main production facility at Whitefield in Bangalore which is supported by 2 distribution outlets in Chennai and associate filling stations in Coimbatore, Thrissur, Triputhi, Erode and Trichy.