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Birla Home in 50:50 venture with German co

Our Bureau

NEW DELHI, Sept. 18

BIRLA Home Finance Ltd (BHFL), a wholly-owned subsidiary of Chambal Fertilisers and Chemicals Ltd, on Monday announced a tie-up with BHW Holdings AG, Germany, for a 50:50 joint venture.

Announcing the tie-up, the Chairman, BHFL, Mr H. S. Bawa, said besides equity participation, BHW Holdings has agreed to lend its expertise in managing the company's sales-force through a training and development programme.

According to the agreement, BHW will be issued 25 million shares in the company by BHFL. With this, the share capital of the company would increase to Rs. 50 crores from Rs. 25 crores. The agreement also provided for equal representation of the two sides on the board of the housing finance company.

BHFL, which is headquartered in Delhi, has a network of offices spread across Bhopal, Kota, Noida, Faridabad, Calcutta, Chennai, Hyderabad and Jaipur. The company proposed to open 11 more branches by March 2001.

Pic.: Mr H. S. Bawa, Chairman, Birla Home Finance, with Mr Reinhard Wagner, Chairman, Management Board, BHW Holdings, before announcing their joint venture in the Capital on Monday.

Pic. credit: Kamal Narang