Welspun India has entered into a 50-50 joint venture with Alok Industries for developing a residential project in Vapi. The project will be executed on 5 million square feet of land. The total cost of the project will be divided equally - Rs 100 crore each by the respective company.
However, it is learnt that the project has already started.
Alok Industries will benefit by way of its upcoming IPO Alok Infra, which will another flower to its bouquet. Welspun India has two plants at Vapi and Anjar; while Anjar already has Welspun India, Welspun City, Vapi will have this project alongwith Alok Industries.
So quite win-win situation for both of them, but one will have to wait and see how and when value generation will happen from these projects for both companies.
Link to the article: http://www.moneycontrol.com/india/news/business/welspun-india-alok-industries5050-jv/16/08/326852
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