Voltas has signed a joint venture agreement with Sermo Montaigu, France, for Perfect Moulds Limited  (PML), the latter's wholly-owned subsidiary company located at Pune. PML is engaged in the design and manufacture of precision plastic injection and compression moulds.

As per the arrangement, Sermo will, subject to obtaining requisite approvals, initially  acquire 35,00,000 equity shares of Rs10 each of PML (35 per cent of  PML's present paid-up capital) from Voltas Limited for Rs 21 million. Sermo will also subscribe to a further 30,00,000 equity shares of  Rs10 each, to be issued by PML, thereby increasing their shareholding in PML to 50 per cent.

Sermo, established in 1966, is one of  the largest  automotive mould manufacturers in Europe. It has manufacturing plants in France, Brazil and Poland, and has plans to further diversify its manufacturing base in Asia. The joint venture will enable the company to develop a low-cost base for outsourcing  their requirements in Europe, and cater to the Indian automotive market.

PML  has been exporting moulds to Sermo and, following the formation of the joint venture, will stand to benefit further from better manufacturing and process controls,  appropriate technology and skills related to the manufacture of  large-size moulds and automobile moulds, higher capacity utilisation, and foreign exchange earnings through exports.