Investkonsult has brought in two used European lines; one line to manufacture traditional underpads and one line for production of insert and booster pads. The lines were modestly refurbished in Sweden before shipment, but the main refurbishing work has been done in India itself.
The JV has also purchased additional new machinery, including a brand new glue-station including hoses and head from Valco Melton, a new SAP application system and a brand new PLC system designed in India.
The JV intends to produce these import-substitute products, since major Indian hospitals import these products from China or other countries in bulk, so the major focus of these products will be the Indian and the subcontinent market.
Investkonsult has provided the knowhow for the JV whereas the Jajoo Group will use its vast marketing network to sell the products. The JV will source raw materials from the domestic markets and will need to import only necessary raw materials like wood pulp and SAP.
The Jajoo family will own 67-70% of the shares in the JV through Jajoo Surgicals and the Berlin family of Investkonsult will own 30-33% of the shares through Investkonsult Sweden. Since Investkonsult does not intend to be a “Producers of Goods”, there is an exit clause in the contract, whereby the Jajoo family can buy out the stake held by the Berlin’s.
Investkonsult was started in 1974 as a trading company for used/second-hand textile machinery. The mid 80’s witnessed the first of European companies beginning to dispose of nonwoven equipment and Investkonsult was quick to grab that opportunity too. Over a period of time, it also entered the disposable hygiene products second hand machinery industry. Today, Investkonsult have also turned consultants, providing consultancy to global nonwoven and disposable hygiene new start-ups.
About Jajoo Surgicals Pvt. Ltd:
Jajoo Surgicals are into manufacturing and marketing of surgical disposables with a presence across 18 states across India. It markets medical and hygiene products to leading private hospitals, state governments and armed forces in India. It also exports to the African continent and to countries in the Indian subcontinent.