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Everest Kanto Cylinder

India

Date: 1990s - Present

Deal: According to Forbes, India's Everest Kanto Cylinder (EKC) began supplying Iran with compressed natural gas (CNG) cylinders in the 1990s, and in 2003 built a manufacturing plant in Dubai to keep up with demand from the Middle East and Pakistan (Forbes, December 14, 2009). In 2006, an investment advisory firm stated that EKC estimated it had approximately 30 percent of Iran's cylinder market share, and Iran imported 22 percent of the company's production in 2005 (Prabhudas Lilladher, September 5, 2006).

Date: March 2005 – Unclear

Deal: According to a company prospectus, in March 2005 EKC signed a Memorandum of Understanding with Iran's Jahad Tahghighat Group to build a CNG cylinder manufacturing plant in Iran. The company's report noted that the agreement had not been finalized (Everest Kanto Cylinder Ltd. Draft Prospectus).

In May 2007, an Indian news publication reported that EKC's plans to invest in the plant were delayed due to the political situation in Iran. According to Kanto's managing director, "We plan to set up a facility with an initial capacity of 200,000 cylinders per year for which a decision would be taken shortly. As per the local requirement, we would hold 49% stake in the project. Our investment would be about $20 million and production would begin in 12-18 months of us signing the joint venture agreement with a local partner." Although it is a minority partner, Kanto would still manage the operation (Daily News and Analysis, May 24, 2007).

On its website, EKC currently lists its Dubai plant as its only overseas facility. The current status of the Iranian facility is unknown (Everest Kanto Website, accessed June 21, 2010).

U.S. Business Ties: According to an Indian trade publication, EKC's subsidiary EKC Hungary Kft owns the U.S. manufacturing company CP Industries Holdings, Inc. (Stock Watch, April 10, 2008). The company website states that it manufactures equipment for the U.S. Navy (CP Industries Website, accessed June 21, 2010).

Last Updated: July 8, 2014