Al Hamad Group and Yamuna formalise new working relationship at Middle East Electricity 2006

The two companies have had a working relationship for more than fifteen years in the power sector.

YGCL, whose registered office and works are located in Jagadhri, Distt Yamunanagar in the state of Haryana, have been involved in manufacturing and marketing various types of cable jointing kits and accessories for the power sector for the last thirty years.

Formed in 1985, AHG, which has offices in Dubai, Sharjah, & Abu Dhabi, is actively involved in power solutions and the manufacture of wires and cables. The Group has a fully-fledged switchgear assembly unit in Ajman Freezone and the ADCABLE factory in Abu Dhabi - their prestigious list of clients includes the UAE Armed Forces, DEWA, FEWA and SEWA.

The Group's expansion programme includes various diversification plans, and the joint venture announced at the Middle East Electricity Exhibition 2006 is a significant development in this direction, and one that will see AHG utilising its considerable regional experience and the marketing strength achieved through many years of successful project execution throughout the GCC.

Equipped with the very latest technology and highly qualified professionals in both production and marketing, plus years of experience, both companies are confident of meeting the ever growing electrical needs of the UAE, and plan to establish the manufacture, packing and marketing of products using YGCL technology.

The objective of the joint venture is to capitalise on the potential of an already existing and growing market by providing quality products and rapid availability. AHG also views this venture as an opportunity to contribute extra growth to the UAE economy.

The equity participation of the joint venture is 51% AHG and 49% YGCL, with an authorised capital of US$1 million. Projected sales of US$ 20 million are confidently projected within three years of the date of starting production.

AHG will provide strategic assistance and support in the UAE to help create a strong infrastructure using its existing resources and goodwill. YGCL will provide technical support in terms of processing tools & machinery to efficiently carry out the joint venture's manufacturing operations.

Comprehensive technical back up and training will be provided by the new joint venture, to ensure high quality technical support and marketing expertise at all levels throughout the new venture. YGCL will ensure that all products are fully compliant to required international standards and specifications. YGCL will also be responsible for the selection, hiring and training of the workforce that is required for the production, processing, testing and marketing of the products.

'The joint venture will initially market its products throughout the GCC, Iraq, Iran, Jordan, Lebanon, Syria and Pakistan. Once established in these markets, other international markets will be targeted,' said Mr. Khalfan Al Qubaisi, CMD, Al Hamad Group of Companies at the signing of the contract with Mr. Shyam S. Sardana, Chairman, Yamuna Gases & Chemicals Ltd.