The Board of Directors of PCBL Limited has in-principle approved the term sheet for entering into a joint venture with Australian company Kinaltek Pty to expand into the growing battery application market, said a filing with the exchange on November 29.

PCBL will own 51% of the shareholding in the joint venture (JV) company, and will infuse US$16 million into the JV and a commitment to infuse up to US$28 million in stages, for setting up a manufacturing facility.

The JV Company shall own the intellectual properties of nano-silicon based products for battery applications and will set up manufacturing facilities for such products.

The proposed transaction between PCBL and Kinaltek will be financed through a mix of internal accruals and external fund raise by the company.

This joint venture is being done to expand into the growing battery application market (eg. electronic vehicles, etc) where there is immense potential of profitable growth. The company is in the process of creating a value-added product portfolio which can command high margins and this is a major step towards the same.