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Technip plans to merge India units

LiveMint logoLiveMint 14-05-2014 P.R. Sanjai & Promit Mukherjee

Mumbai: France’s Technip SA, an offshore engineering and construction company, plans to merge its four Indian companies into one under Technip India Ltd in order to consolidate its activities.

Technip KT India Ltd (based out of New Delhi), Technip India Ltd (Chennai), Stone and Webster Process Ltd and Global Industries Ltd (both in Mumbai) will be merged into Technip India Ltd.

“We have secured all necessary legal approvals for this merger. As a part of this merger, we will be standardising our engneering, procurement and construction capabilities in India and will offer one-stop offshore services under one brand,” Samik Mukherjee, country head and managing director (India) at Technip, said in an interview on Wednesday.

Technip is in the process of selling its Indian offshore company Seamec Ltd to logistics company HAL Offshore Ltd. Last month, HAL Offshore, part of the MM Agrawal Group, had agreed to buy a 75% stake in Seamec from Coflexip Stena Offshore (Mauritius) Ltd, a part of Technip SA, for `246 crore.

HAL Offshore will initially buy a 51% stake in Seamec from Coflexip at `97 a share and look to buy the remaining stake in an open offer.

Mukherjee said Technip as a group is focusing on deep sea exploration instead of shallow water projects executed by Seamec.

“We have decided to exit Seamec as an overall group strategy. With the merger of the remaining four companies, Technip would be able to offer technologically advanced solutions to deep water explorations in India,” he said.

Technip’s India unit revenue was at $250 million for the last financial year and accounts for 10% of the total man hours of Technip Group.

Mukherjee ruled out any public listing of Indian unit or selling a stake to strategic investors.

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