Fisher-Xomox Sanmar to undergo change

By Our Special Correspondent

CHENNAI, JULY 4. The Chennai-based Sanmar group's joint venture with two subsidiaries of Emerson Electric Company of the U.S. - Fisher-Xomox Sanmar Ltd. - is set to undergo a major change. This follows the sale of one of its subsidiaries - Xomox Corporation - to Crane Co. of Crane Valves group by Emerson Electric Company. The latter has chosen to hive off Xomox since the products manufactured by the subsidiary do not fit into its `strategic line of activity'.

The Sanmar group has teamed up with both the subsidiaries of Emerson - Xomox Corporation and Fisher Control International - to float a unified Fisher-Xomox Sanmar Ltd. The JV has two divisions. One is Xomox division. This produces teflon lined plug valves, sleeved plug valves, butterfly valves, ball valves, check valves and diaphragm valves. The other is Fisher division which manufactures control valves, regulators and level controls.

With the hiving of Xomox, the Indian joint venture will also undergo a change. The Xomox division will now be spun off into a separate venture. The new venture will have partnership with Xomox Corporation which has now come under the Crane Co fold. The new entity will have an appropriate name, reflecting the tie-up with Xomox Corporation which has a new parent in Crane Valves. Sanmar's arrangement with Fisher Control will continue under a new name.

According to Mr. Larry W. Solley, Chairman and Chief Executive Officer, Fisher Controls International, the re-organisation of Indian joint venture, in the light of separation of Xomox business from the Emerson group, should not pose any problem. For, even under the existing arrangement, the two divisions of the joint venture are operating from different facilities. The Xomox facility is in Tiruchi. The Fisher division is in Chennai. Currently, legal exercises are on in this regard.

Mr. Solley, who was here to participate in the silver jubilee celebrations of Sanmar Engineering Corporation (SEC), told this correspondent that Fisher Control would show no ``reluctance to bring products from this joint venture to anywhere in the world'' since the products made by it conformed to global standards. Though Mr. Solley was somewhat concerned about the slowdown in the Indian economy, he, nonetheless, envisaged immense export opportunities for the joint venture. Letting the Sanmar group manage the joint venture, he said, had helped Fisher Control `penetrate Indian market' and get more business in the process. He indicated that the current structure of the joint venture - 51 per cent equity partnership by Sanmar group - would continue. Stating that ``they (Sanmar) have been good business people,'' Mr. Solley, nevertheless, said the joint venture should work harder on customer and after-sales services so as to stay ahead of others. ``The competitive cost position of the joint venture enables us to grow outside India,'' he said. Nevertheless, he said, ``we want to gain share in India which is strategic market for us.'' To a query, he said both India and China ranked among top countries where Fisher Control saw immense growth opportunities.

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