Financial Daily from THE HINDU group of publications
Saturday, Jun 26, 2004
Alliances & Joint Ventures
Miyazu joins hands with Sumi Motherson group Design and manufacture of car body dies
New Delhi , June 24
THE Japan-based Miyazu Seisakusho Company Ltd, one of the largest car body die manufacturers in the world, has formed a joint venture company with the Delhi-based Sumi Motherson group for design, sale and eventual manufacture of car body dies in India.
Though die manufacturing comes under the Reserve Bank of India's automatic approval route, there are certain issues for which the company would need to get the permission from the Foreign Investment Promotion Board, the Sumi Motherson Group Chairman, Mr Vivek Chaand Sehgal, told Business Line.
According to the understanding reached between the partners, Miyazu would hold a majority 51 per cent stake in the company while another Japanese trading house - Sojitz Corporation - will hold 15 per cent stake. The Indian partners will hold the remaining 34 per cent.
Sumi Motherson group is investing in the joint venture through its investment arm Motherson Advance Systems Solutions Ltd.
The agreement was signed around the end of May and the new joint venture company - Miyazu Motherson Engineering Design Ltd - has already been incorporated.
The company has an authorised capital of Rs 10 crore and a paid-up capital of Rs 3.5 crore.
Mr Sehgal said that Miyazu makes dies for the main body of cars manufactured by international players such as Toyota, Honda, Suzuki, General Motors and Ford.
For the Indian market, the company has made dies for the Scorpio as well as scooters.
"We would be doing the entire designing of tools and dies in India. In a way, it may be said that Miyazu would source its entire designing job from the Indian subsidiary. To make such dies, one needs a lot of designing skills. But no one had been doing these things in India till now because there was no car body die-makers in the country," Mr Sehgal said.
As per the joint venture agreement, six engineers from the joint venture company would be stationed in Japan for necessary training, Mr Sehgal said.
The company has also signed a joint venture agreement with Motoman Robot Company Ltd, a group outfit of Japan-based Yaskawa Electric Corporation of Japan. Initially, the joint venture outfit would be engaged in sales, maintenance and installation of Motoman robots in India and eventually manufacture robots in India, Mr Sehgal said.
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