Announcement of Investment in KSB Pumps Private Limited of India on March 6, 1961

\I INTERN'ATIONAL'' FINANCE CORPORATION . •1818 H STREET, N.W., WASHINGTON 25, 0. C. TELEPHONE: EXECUTIVE3-6360 mESS RELEASE NO. S4 SUBJECT: Investment in KSB Pumps Private Ltd., of India FOR RELEASE A. M. Newspapers Monday, March 6, 1961 The International Finance Corporation announced today a commitment to invest US$2101 000 in KSB Pumps Private Ltd., of Bombay, India, to help finance the construction and operation of a plant at Pimpri, near Poona, for the manufacture of special-purpose pumps. Principal shareholder is Klein, Schanzlin & Becker AG (KSB) of Frankenthal, Gennany. This finn was formed in 1871 and is today a lead- ing manufacturer of a wide range of pumps, compressors, and valves. Other shareholders are: The Industrial -and Prudential Investment Co., Ltd., of Bombay; The New India D~,velopment Corporation (Private) Ltd.$ and a private investor. KSB will be responsible for construction of the plant, and for the Indian company's management and technical direction. Production is planned at about 800 pumps annually, and is expected to begin in 1962. Total cost of the project is estimated at $6.30.,000 in u. s. dollars and dollar equivalent. The IFC investment of $2101 000 :1s in unsecured dollar notes bearing 7% payable in dollars, and maturing between 1966.and 1971. IFC will also be entitled to receive additional interest in nipees related to profits • • IFC•s commitment is subject to completion of the r.ecessary legal formalities.