It aims to increase turnover in coming years by supplying new products to industrial markets such as petro-chemicals, pharmaceuticals, automotive, military and defence, agro-chemicals, food processing and power, to list only a few.
Following initial discussions with potential partners in India, Elfab sought assistance through the UK Trade and Investment's R and D (Research and Development) Programme to support the establishment of the correct company structure and to ensure the protection of all intellectual property both disclosed by Elfab and generated by the new company, Elfab India.
The joint venture, which Elfab controls, will manufacture a range of products in India. All research and development for new products will remain at the Elfab facility in North Shields.
The R and D Programme funded support by consultants RTC North, who established the terms of the joint venture company, its shareholders' agreement, technology and sales licenses. Issues concerning profit extraction also needed to be considered to ensure the final company structure was tax efficient to maximise profits.
David Coppock, UK Trade and Investment's International Trade Director for the North East said: "UK Trade and Investment recognises the impact that research and development has on a company's abilities to exploit international markets.
"In recognising this we have established a programme to assist companies engaged in R and D to internationalise their business through strategic alliances such as joint ventures, licensing, joint R and D, product development collaboration and technology transfer.
"Following a pilot programme earlier this year, we have engaged RTC North to deliver this important and highly specialised service in the North East. This programme will complement UKTI's existing export and trade support delivered in the region through our network of International trade advisors. With R and D support from this UKTI programme Elfab have been able touccessfully develop their products and brand in the Indian Market."
RTC North Head of Business Consulting, Ray Jones, said: "This joint venture represents a significant opportunity for Elfab to become an integrated first choice designer and supplier of pressure sensitive relief devices for a wide range of industries in India. The aim is to develop a strong market presence and sell a range of products specific to their requirements".