Emirates Investments Group announces joint venture with Australia's TFS Corporation

The joint venture will have exclusive rights to the sales and distribution of TFS Corporation's sandalwood products in the Middle East, North Africa and Pakistan

The agreement covers the establishment of a local joint venture company (with EIG retaining 51% ownership and TFS 49%) governed by a Board comprising representatives of each party, which will be granted the exclusive distribution of TFS and Mt Romance products into the region.

The company plans to utilize TFS's sandalwood oil to manufacture and distribute an extended range of value-added sandalwood-based products that are widely used in the region and the sub-continent.

Mr Raza Jafar, Vice Chairman of EIG, welcomed the formation of the JVC with TFS saying, "The strategic alliance forged between EIG and TFS through the formation of our JVC will be value-accretive for our companies and will also offer excellent value for consumers. EIG's unmatched distribution system in the chosen regions will open the door to a huge market for products derived from TFS's high quality sandalwood oils, which rank among the world's best."

Sandalwood has a long history in the region, and the establishment of the joint venture will, when fully executed, make TFS the world's largest grower, processor and distributor of Indian and Australian sandalwood oil and high-end by-products.

TFS's Founder and Executive Chairman, Frank Wilson said, "This is an historic agreement and TFS is proud to be partnering with a company like EIG that has such strong networks and huge credibility in its regions of operation. I believe this JVC will be a significant milestone for TFS as it will realise our vision of producing value-added sandalwood products for the mass markets available in the Middle East and the sub continent where the demand for sandalwood products in enormous and continues to grow strongly with economic and population growth in this region."

"With the assistance of EIG we are confident TFS can attract significant investment from the region into our plantations and in so doing substantially decrease our reliance on MIS investment to fund our growth into the future," he added.

The combination of TFS's very strong position in the sandalwood industry and EIG's financial resources, networks and credibility is a powerful alliance that will bring significant flow-on benefits to all stakeholders.

Subject to the completion of a feasibility study, the joint venture will also build a Santalum Album (Indian Sandalwood) distillation plant modeled on the TFS-owned MRA plant at Albany, West Australia. The plant, which is planned for completion in 2012, will have a minimum 12.5 tonnes p.a. oil production capacity and the ability to increase this to 50 tonnes p.a as demand dictates. TFS has committed to supply sufficient sandalwood to feed the distillation plant.

EIG has a wide range of investment interests in the Middle East and Asia Pacific regions, and is involved in a number of partnerships and strategic relationships in financial services, real estate, aviation, industry and trading. EIG bases its investment decisions on partnering with profitable, ethical and socially responsible business partners, and seeks to identify unique business opportunities and reputable companies to create dynamic new business opportunities in its region of influence and beyond.