Zen Technologies and Xpanse Investments have committed to explore a joint venture to establish production and R&D facilities in South Africa.
Zen Technologies is listed on the Bombay Stock Exchange (BSE) and is a pioneer in the design, development and manufacture of training simulators for defence, homeland, transport and mining sectors.
Ashok Atluri, chairman and MD of Zen Technologies, says the investment comes on the heels of the BRICS summit. It will strengthen economic ties between BRICS economies and could collectively play a more central role in the new global economy.
The announcement follows consultation with government departments as well as human resources and training experts in the police and defence.
“We are incredibly proud and grateful that this iconic brand has proposed to explore the possibility of investment at such a significant level in our country,” says Xpanse CEO Innocentia Motau.
Atluri adds: “We want to create an ecosystem in partnership with Xpanse where we can train the South African youth and make them part of the pool of globally skilled and employable workers. We look at this, as a starting point to broaden our participation to bring better integration between the BRICS economies.”
The proposed investments, once approved by Zen’s Board, will be used to fund research, production, marketing, international tradeshow presence and other forms of marketing. The funding also will in future be used to build export opportunities that will ensure a long-term source of revenue for Zen Technologies.
The export incentives offered by the South African government remains attractive and will play an important role in Zen Technologies’ strategy going forward.