10th Aug 2007 09:06
Origo Sino-India PLC10 August 2007 Origo Sino-India plcRNS & MEDIA RELEASE10th August, 2007 EVEREST KANTO ENGAGE ORIGO FOR CHINA EXPANSION Origo Sino-India PLC ("Origo") (LSE:OSI), the investment and strategic advisorycompany focused on the private equity markets of China and India, announcedtoday it has been engaged by Everest Kanto Cylinder Limited ("Everest Kanto") toassist in expanding Everest Kanto's business in China. Everest Kanto is Asia's largest high pressure gas cylinder manufacturer, with amarket cap of US$500 million. It has embarked on a global expansion plan bydoubling its existing capacity in Dubai and setting up a green-fieldmanufacturing facility in China. Origo will focus and assist in sourcing highgrowth, merger and acquisition opportunities for Everest Kanto in China. As in India, China's natural gas market is expanding rapidly, fuelled byeconomics of usage and regulatory directives. China is the world's 2nd largestenergy producer and consumer, after the US, with coal and crude oil as thelargest energy sources. Both highly polluting, China already ranks second andfirst in CO2 and SO2 emission respectively. Hence, the Chinese government isactively looking for renewable and environmentally friendly energy alternativesand technology. Natural gas is a green and efficient source of energy that ismore price competitive than oil and liquefied petroleum gas is therefore beingactively promoted by the Chinese government. Everest Kanto has about 85% of the market share of compressed natural gascylinders in India. Among its market niches, Everest Kanto caters to the leadingautomobile manufactures in the Indian market and also manufactures cylinders forall kinds of uses including industrial, fire fighting and medical. Improvingcost economics, refuelling infrastructure and the need for a cleaner environmentare likely to see an increased gas cylinder demand in China. Commenting on the engagement, Vinay Ganga, Origo's Managing Director for Indiasaid: "Everest Kanto is among the strongest natural compressed gas cylindermanufacturers in the world. Assisting them to expand in China to gain asignificant market share there is a perfect fit for Origo's private equity andtransaction practice which is focussed on bringing the Indian and Chinesemarkets closer." Commenting on Everest Kanto's strategy, P.K. Khurana, Everest Kanto's Chairmanand Managing Director said: "Everest Kanto's strategy is to move into high growth environments like China bysetting up global scale, world class projects that meet local and global demandwhile developing a large pool of qualified and skilled manpower. We think Origois the best partner for accelerating our China expansion." Commenting on the engagement, Chris Rynning, Origo's CEO said: "Favourable policies, and substantial investment in natural gas infrastructure,by the Chinese government generates a huge demand for specialized gas equipmentfor storage, transportation and distribution. This brings enormous business andgrowth opportunities for manufacturers of such equipment such as Everest Kanto." END For further information please call: Christopher Joll/Tim McCall, MJ2 020 7491 7776 John Depasquale, Seymour Pierce 020 7107 8000 Notes to Editors 1. Origo Sino-India plc ("Origo"): • Origo is an established private equity investor and strategic consultancy business, which provides its shareholders with exposure to growth opportunities and private equity returns in China and India. • Origo's business model is to generate capital gains from private equity investment in growth companies from which it also generates fees for consultancy services related to further fundraisings, M&A and strategic development. • Origo is aligned with two major institutions which provide a source of high quality deal flow. In China, Origo works closely with China Equity, a leading private equity firm, whose chief executive is on Origo's board. In India, Origo has entered into a memorandum of understanding with SBI Capital Markets, one of longest established companies in the Indian Capital Markets. A former chairman of SBI is on the board of Origo. • Origo has signed agreements with 4 Chinese companies and 7 Indian companies to provide both financing and advisory services and has 23 potential investments in the pipeline. • At the AIM Placing in December 2006 Origo raised £12.8 million gross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence per share. Each Ordinary Share carries a Warrant exercisable at 55p. Seymour Pierce Ltd is the nominated adviser and broker. 2. Everest Kanto Cylinder Limited • Established in 1978, Everest Kanto has grown to become a pioneer in development & production of industrial and compressed natural gas cylinders. With manufacturing plants in Aurangabad, Tarapur and Gandhidam in India and Dubai in the Middle East (UAE), Everest Kanto enjoys market leadership in both domestic and international markets. • Everest Kanto is committed to a cleaner environment through the development and manufacturing of high quality compressed natural gas cylinders used for alternative fuel vehicles. • The gas industry relies on cylinders to store and transport gases. Because the cylinders are packed with gases under high pressure, they can be volatile. Everest Kanto's products are the result of continuous research & development. Each cylinder goes through specified testing at every stage of production by highly qualified quality control personnel. • EKC's high-pressure gas cylinders - for oxygen, hydrogen, nitrogen, argon, helium, air and so on are designed to withstand rough handling. Made of high-quality seamless steel, Everest Kanto adhere to the most stringent national and international regulations This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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