Financial Daily from THE HINDU group of publications
Wednesday, Apr 17, 2002
Financial Daily from THE HINDU group of publications Wednesday, Apr 17, 2002 |
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Corporate
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Alliances & Joint Ventures Toyota inks pact with Karnataka for export unit Our Bureau
BANGALORE, April 16 TOYOTA Motor Corporation (TMC) signed an MoU with the Karnataka Government here on Tuesday, to set up an export-oriented unit to make automotive transmission systems at Bidadi and Jigani near Bangalore at a total investment of Rs 360 crore. The Chief Minister, Mr. S.M. Krishna, said that despite recessionary trends, new investments were taking place in the State. The Director of TMC, Mr Akira Okabe, said that India would emerge as a key player for TMC and added, "We are studying where to export the auto transmission systems to be manufactured in India.'' The joint venture company, to be set up by TMC, Toyota Industries Corporation and Kirloskar Systems Ltd (KSL), will be called Toyota Kirloskar Auto Parts Ltd (TKAP). It will have an annual production capacity of 1,60,000 units and is scheduled to go on line in mid-2004. TKAP, to be set up in Bidadi, has been created by separating KSL's existing front and rear axle and propeller shaft production business from KSL and by infusing funds to the tune of Rs 230 crore from TMC and TICO. In effect, TMC and TICO have bought out 90 per cent of KSL's business in front and rear axle and propeller shaft production business. TMC will hold 64 per cent, TICO will hold 26 per cent and KSL 10 per cent in the new company. KSL has made an initial investment of Rs 1 lakh to register the company on April 10. The new company's Managing Director will be Mr Kiyomichi Ito. The company will utilise 180 of KSL's current employees and will also employ 220 new employees. Another Rs 130 crore will be infused in the existing company, Kirloskar Toyoda Textile Machinery Ltd at Jigani, which will also make some of the parts needed for the auto transmission systems to be manufactured at the TKAP plant at Bidadi.
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