Zamil Industrial announces new joint venture with New Delhi Tele-Towers Pvt. Limited

The partnership, named Zamil New Delhi Infrastructure Pvt. Ltd., will operate from New Delhi, India, and focus on the supply of Telecom towers, accompanying shelters fitted with the appropriate sandwich panels, customized air conditioning equipment and power interface units.

It will also supply a range of related support products, along with comprehensive installation and maintenance services.

The joint venture agreement creating the new company was completed after details were finalized on 27 October 2008.

Authorized capital amounts to SAR 75 million ($20m), in which Zamil Industrial will hold a 51% equity share.

Abdulla Al Zamil, COO, Zamil Industrial, commenting on the venture, stated, "We are extremely pleased to partner with New Delhi Tele-Towers Pvt. Ltd as we embark on this new journey.

It is exciting to become an active participant in the telecom business in India, as the possibilities for growth and innovation are endless.

At Zamil Industrial, we are confident that our extensive resources and capacity for innovation and creativity will provide a solid, supportive platform from which to develop efficient, cost effective and top quality solutions for telecom operators."

The joint venture combines the resources of New Delhi Tele-Towers Private Ltd with the production capacity of the existing Zamil Steel factory located in Pune, India, as well as the Zamil Industrial affiliated air conditioning facility - Advantec Coils - in Himachal Pradesh in Northern India and various Zamil Industrial facilities in Saudi Arabia.

It marks the first Zamil Industrial offering of all its major product lines in the form of an entirely new business entity.

Ramesh Awtaney, CEO of New Delhi Tele-Towers Pvt. Ltd, said:

"We are pleased to join with Zamil Industrial in providing products and services that are in such great demand within this high growth, high potential industry. As telecom operators cope with astronomical growth, they are searching for the right businesses to take on the responsibility of building and servicing passive infrastructures - leaving operators free to focus on network development and providing innovative solutions to their customer base. We believe that Zamil New Delhi Infrastructure Pvt. Ltd. is a 'right place - right time' solution to an urgent industry need."

Expectations for success are bolstered by projections in force for Zamil New Delhi Infrastructure Pvt. Ltd.

The customer base is growing at a rate of nine million subscribers per month, according to Telecom Regulatory Authority of India (TRAI) reports.

At full capacity, the new company is projected to attain annual revenues exceeding $300m by the fifth year of operation.