De Neers Tools Forms Joint Venture Company with Piyush Garg and Sarthak Goyal

De Neers Tools Forms Joint Venture Company with Piyush Garg and Sarthak Goyal​

De Neers Tools Limited has announced the proposed formation of a joint venture company, which will be named DNSJV Private Limited or a mutually approved name. This joint venture is set up with Mr. Piyush Garg and Mr. Sarthak Goyal for the purpose of manufacturing, marketing, selling, and dealing in tools, bits, sockets, and allied products.

The newly formed Joint Venture Company (JVC) will operate as a private limited company in India.

Joint Venture Structure and Scope​

The proposed transaction involves De Neers Tools Limited partnering with Mr. Piyush Garg and Mr. Sarthak Goyal. The shareholding structure in the JVC is proposed as follows:


The JVC's primary scope of operation is centered around tools, bits, sockets, and allied products, including the manufacturing of sockets. While the initial scope is focused on India, the entity retains an option to expand into international markets.

Governance and Consideration​

The Joint Venture Agreement details the operational and governance structure of the proposed company:

• Governance: The Board of Directors will consist of two directors, with each party retaining the right to appoint one director. Mr. Neeraj Aggarwal, representing De Neers, will serve as the Chairman of the Board. Mr. Piyush Garg is appointed as the Chief Executive Officer (CEO) and will oversee the day-to-day operations and sales target achievement for the JVC.
• Consideration: The formation of the JVC is yet to be completed, and the consideration structure upon incorporation will involve a contribution of funds or cash through equity subscription and/or capital contribution, in addition to the contribution of machinery and technical know-how.

Strategic Objectives​

The proposed transaction is expected to achieve several strategic objectives for the company. These include:

• Strengthening De Neers Tools Limited's manufacturing capacity and capabilities within the tools and allied products segment.
• Incorporating domain expertise, technical know-how, and an established sales network in the tools industry.
• Enhancing the company's market foothold in the industrial products ecosystem in India.
• Creating synergies between the parties' operational and market expertise, thereby improving the overall profitability and business sustainability of the JVC.

The formation of the JVC is contingent upon completing customary conditions precedent and necessary incorporation formalities under applicable law.

DENEERS Stock Price Movement​

On Monday, De Neers Tools Limited shares rallied, gaining 2.11% and closing at ₹211.50, successfully adding ₹4.35 to its value for the session. The stock maintained strong momentum throughout the day, settling on a robust volume of 43,200 shares traded.