Japanese suppliers in India expand production facilities

New plants to be built by NTN, Nittan Valve and Denso



 This Report shows the recent actions and future plans of Japanese suppliers in India for about one and a half years by October 2011. While Suzuki and Toyota plan to increase production in India, it becomes imperative for the Japanese suppliers to build new production capacity, fortify production capabilities, and increase capitals in their local companies. Meanwhile, they are more inclined to localization of marketing and R&D in this emerging country.

New plants to be built by NTN for Toyota, by Nittan Valve for Honda and by Denso for Suzuki and Toyota

 Building new plants by Japanese suppliers are more active at Bangalore and Chennai in southern India which is home to Toyota and Renault-Nissan plants, and Rajasthan, Uttar Pradesh and Haryana States in northern India which is home to Suzuki plants.

 In southern India, NTN is building a plant for constant velocity joints and hub bearings, Advanex for precision springs, Kasai for interior plastic parts and Yorozu for suspension parts. In northern India, Shiroki will newly build a window regulator plant, and Riken a piston ring and vibrator plant.

Japanese suppliers to build plants in India

Actions for about one and half years by the middle of October 2011
NTN to build a constant-velocity joint and bearing plant in southern India
NTN NEI Manufacturing India, a NTN's subsidiary, announced in February 2011 that it started construction of a plant near Chennai City to produce constant-velocity joints and the third-generation hub bearings. The initial investment is believed to be several hundred million yen. The plant will start production in April 2012. Products will be supplied to Japanese, European and US OEMs such as Toyota and Ford based in southern India. NTN plans to increase sales of its Indian business to twenty billion yen in FY2015 from four billion yen in FY2010.
TBK makes the joint venture its subsidiary, while building a new plant
TBK announced in September 2011 that it increased its stake in the joint venture TBK India Private Limited from 49% to 80% and made it its subsidiary. TBK India produces water and oil pumps and was capitalized at one hundred million Rs. The Japanese supplier will build a new plant in Maharashtra State for 500 million Rs. The construction will be completed in March 2012.
THK to build a new auto parts plant
THK will build a new auto parts plant in India, planning to start operation by the end of 2013, according to the news report in January 2011. The company produces linkballs for automotive suspensions.
Ashimori produces seatbelts for Suzuki at its Indian subsidiary
Ashimori started production of seatbelts at the Indian plant of Ashimori India Private Limited in Rajasthan State in June 2011 after the investment of 1.2 billion to 1.3 billion yen. Ashimori ran the plant with manufacturing driver and front passenger seatbelts in the beginning. Since December 2011, Ashimori has produced 60K sets of front and rear seatbelts monthly. The seatbelts are supplied mainly to Maruti Suzuki. The plant will produce air bags as well according to the plan. It is said that airbags will become mandatory equipment within a few years in India. Ashimori will make a capital investment in the plant again to meet the upcoming legislation.
Advanex to build a new precision spring plant
Advanex will build a new precision spring plant. It plans to start construction within 2012 after the completion of local market research by the representative office in Chennai City. The investment will amount to fifty to one hundred million yen. Expecting to have sales of 100 million to 200 million yen in the first year, Advanex aims for sales of billions of yen in the future.
Alpha to build a new plant to produce door handle frame components
Alpha set up an Indian subsidiary Alpha Security Instruments (India) Private Limited in Chennai City in March 2011. It will build a new plant, which will start operations in 2012. News reports say that its investment will aggregate to about 3.0 billion yen. Alpha will produce door handle frame components for 50K vehicles per year at the new plant. It primarily intends to export low price products built with local materials to its Kyushu plant in Japan, while planning to supply the products to Japanese OEMs' local companies in the future. Alpha attempts to expand sales of the Indian business to 25% of the total by 2016.
Ichikoh to form a joint venture with an Indian major supplier Fiem
Ichikoh announced in October 2010 that it inked the Memorandum of Understanding with respect to forming a joint venture with Fiem Industries Ltd., an Indian major lamp and mirror system supplier based in New Delhi City. Fiem will take a 34% stake and Ichikoh-Valeo (the largest shareholder of Ichikoh) will take the rest. The plant will be built by Valeo in northern India. The joint venture will produce and supply lamp and mirror systems to Nissan and local OEMs in 2013 at the earliest.
Ichikoh has provided Fiem with technical support since 2005, and has been involved in finance and business cooperation with the Indian supplier since 2009. Ichiko aims to have sales of 20 billion yen in the Asian region in FY2014 through the cooperation with Fiem.
Kasai signs mutual complement agreement with Groupo Antlin to build a new plant in India
Kasai tied up with a Spanish major supplier Groupo Antlin (GA), planning to produce parts in India as of May 2011. Kasai will build a new plastic interior parts plant within the GA's plant premises in Chennai City. Kasai will shift the current consignment production at a Korean company to in-house production. Kasai expects the tie-up with GA to curb total investment to around 60% compared to that on its own.
Keihin to establish a production and sales subsidiary
Keihin established Keihin Automotive Systems India Pvt. Ltd. near Gurgaon City in August 2011. The new company is engaged in production and sale of motorcycle and automobile parts. It is capitalized at 200 million Rs. Keihin takes a 70% stake and its Asian headquarters takes a 30% in it. This is the third production facility for Keihin in India.
Kosei Aluminum to run the aluminum wheel joint plant in 2012
Kosei Aluminum will build a new aluminum wheel plant in Chennai with NK MINDA Group, a local parts supplier. The Japanese parts supplier established a new company (KOSEI MINDA ALUMINUM Co.,Ltd.) in 2011. It will run the plant in 2012. The new company is capitalized at about one billion yen. Kosei Aluminum Group takes a 60% stake and NK MINDA a 40% stake. After the start of operation, 1.7 billion yen will be invested in the joint venture plant to increase the monthly production capacity to 50K units by 2014.
CCI to build a new coolant plant for local production by 2013
CCI will build a coolant and brake fluid plant by 2013 according to the news report in August 2011. CCI has supplied the products to OEMs via local companies. It will shift to local production to respond to increasing demand of Japanese OEMs and to reduce costs. The site of the plant and the production capacity are not yet decided. The investment will aggregate to three billion yen for Brazilian, Chinese and Indian plants.
Shiroki to build a new interior parts plant
In December 2010, Shiroki started running the new interior part plant via Technico Industries, Ltd. (Gurgaon City) in which Shiroki has a stake. Shiroki is supplying window regulators to Toyota for the Etios and to Multi Suzuki for the Swift. It invested about one hundred million yen. Shiroki signed the technical partnership with and took a stake in Technico in 2007. Since then, the capital ratio of Shiroki has been increased to reach 27% in October 2010.
Sekisui Chemical establishes an injection mold production joint venture
Sekisui Chemical established Sekisui DLJM Molding Pvt. Ltd. with Dipty Lal Judge Mal Pvt. Ltd. of India in August 2011. The new company is capitalized at one million Rs, in which Sekisui Chemical takes a 51% stake. It built production facilities in Uttar Pradesh State and Rajasthan State. Sekisui DLJM will produce injection molds for motorcycles at the moment, while planning to produce those for automobiles including interior parts and bumpers within two years. Sekisui Chemical aims for sales of three billion yen in 2013.
Denso to strengthen its Indian business, eyeing new plant construction
To respond to the actions of Maruti Suzuki and Toyota, Denso will examine the possibility to reinforce production capacities of its two local plants of DENSO Haryana Pvt. Ltd. in Haryana State and DENSO Kirloskar Industries Pvt. Ltd. in Karnataka State and to build a new plant according to the news report in January 2011.
Tokai Rubber built an anti-vibration rubber new plant; production to start 2012
Tokai Rubber built a new anti-vibration rubber plant near Bangalore via its local subsidiary TOKAI Rubber Auto-parts India Pvt. Ltd. (Karnataka State). With the investment of 700 million Rs, the construction finished in August 2011. Tokai Rubber plans to start full-scale production at the new plant in January 2012. It expects to have sales of about 1.2 billion yen in FY 2015. Tokai Rubber has production at a leased plant in India at present. It will step up production by using its own plant to catch up with the increase of production by its customer Toyota.
Nichirin expands its hose business to India, and opens an office
Nichirin opened a hose business office NICHIRIN Autoparts India Pvt., Ltd. near New Delhi in October 2010. Nichirin Autoparts is engaged in local market research, promotion activities, and supplying products from Vietnam to India.
Nikki forms a production & sales subsidiary for carburetors and engine fuel feeders
Nikki formed a subsidiary Nikki India in Tamil Nadu State in July 2011 to produce and sell carburetors and engine fuel feeders. Nikki takes a 75% stake and its R&D subsidiary takes a 25% stake in the new company capitalized at about 200 million yen. The new subsidiary is supposed to start running in 2011, according to the news report in June 2011.
Nittan Valve to establish an engine valve plant with Eaton
Nittan Valve will establish an engine valve plant with its largest shareholder Eaton. The construction will be complete within 2014. It will have an annual production capacity of 20 million valves. The investment is assumed to be a few hundred million yen; however, the capital ratio and the location are yet to be decided according to the news report in May 2011. In the mean time, Nittan Valve will set up an engine valve line at the Eaton's local plant. The line will start running in 2012 with a monthly production of 200K engine valves. Nittan Valve will invest about one hundred million yen in total.
NHK Spring to build a second plant to produce coil springs and stabilizers
NHK Spring announced in August 2011 to build a new coil spring & stabilizer plant via its subsidiary NHK Spring India Ltd. The plant will be built near Chennai, and will start production of coil springs in 2014 and stabilizers in 2015. The plant will have annual production capacities of 3.3 million coil springs and 1.5 million stabilizers. NHK Spring will invest about 1.3 billion yen.
NHK Spring also announced in August 2011 to reinforce the production capacity of the current plant NHK Spring India Ltd. at Manesar. It will spend about 300 million yen to build a new coil spring production line to increase the production capacity from 5.7 million to 8.3 million units.
Imasen begins start-to-finish production of seat adjusters from parts processing
In 2010, Imasen installed press and welding facilities at the seat adjuster plant of Imasen Manufacturing India Pvt. Ltd., in Rajasthan State, which has been in operation since April 2010. It intends to realize start-to-finish production from the parts processing in order to streamline the logistics and strengthen the production capacity. Imasen will supply the products to Honda and Nissan, aiming for sales of 1.7 billion yen in FY 2012 according to the news report in July 2010.
Nifco forms two subsidiaries at once
Nifco formed two wholly-owned subsidiaries in northern and southern India in July 2010. It will produce plastic fasteners at these subsidiaries and supply them to Japanese and Korean OEMs. The north plant Nifco India Pvt. Ltd. in Haryana State and the south plant Nifco South India Manufacturing Pvt. Ltd. in Chennai City are capitalized at about 570 million yen and about 77 million yen, respectively.
NSK strengthens its electric power steering system business, while planning to build a new plant
NSK raised its stake from 50% to 51% in the joint venture Rane NSK Steering Systems established with the local parts supplier Rane Group in December 2010. NSK aims to expand the power steering system business in India. In addition, it plans to build a new electric power steering system plant. Mumbai is a potential candidate for the plant site. NSK will start operations of the plant by FY2012.
NPR forms a valve sheet manufacturing subsidiary, planning to start manufacturing in 2013
NPR announced in September 2011 to form a valve sheet manufacturing subsidiary NPR Manufacturing India Pvt. Ltd. in Chennai City in December of the same year. It will be capitalized at 600 million Rs. NPR will take a 99% stake and its subsidiary NPR Fukushima Factory will take a 1% stake in the subsidiary. NPR will spend about 1.8 billion yen to build a plant, with plans to start operations in January 2013.The plant will have a monthly production capacity of three million units. NPR aims to reduce costs by locally producing the parts which are currently supplied from Thailand.
Hi-Lex starts operation of the second control cable plant
Hi-Lex newly built a second plant for manufacturing control cables (HI-LEX INDIA Pvt. Ltd.) in Manesar City, Haryana State. Hi-Lex started operation of the plant in July 2010 after the investment of about 560 million yen. Its monthly production capacity is 1.5 million units. The plant was originally planned to start operations in 2008, but it had been shelved.
Bando Chemical to build a new plant to produce belts
Bando Chemical's subsidiary, Bando (India) Pvt. Ltd., started building a belt plant in Bangalore in March 2011. It plans to start production at the plant in 2013. The investment will run up to about two billion yen. Bando Chemical will have a total annual production capacity of seven million units including that of the existing plant in India.
Bridgestone starts operation of truck and bus tires production, while building a second plant
Bridgestone started operation of the truck and bus tires production line at the Indore Plant in June 2011 with the investment of 3.3 billion yen. This line is capable of producing two hundred tires per day. The production capacity will be increased to 400 tires in the first half of 2012. Tires for trucks and busses have been imported from Japan to India. Bridgestone will switch it to local production.
Bridgestone will build a new plant to produce tires for passenger cars, trucks and busses in Pune City via its local subsidiary BRIDGESTONE INDIA. The investment aggregated to 50 billion yen. It will start producing passenger car tires in January 2013 and truck and bus tires in August 2013 at the new plant. The plant is expected to have a daily production capacity of 10K passenger car tires and 3K truck and bus tires.
Marubeni Automotive to produce CNG vehicle parts in India
Marubeni Automotive will produce CNG (compressed natural gas) vehicle parts. It will establish a new local company with a Japanese parts supplier. As for the plant, Marubeni Automotive will buy an existing plant or build a new one, planning to run the business in FY2012. The investment is estimated as two to three billion yen according to the news release in July 2011.
With growing demand for CNG vehicles in India due to its good fuel economy, Maruti Suzuki and Tata have launched CNG models. The Japanese CNG market hovered at 40K-unit level in 2010, while the Indian CNG market is expected to expand from 1.1 million units in 2010, 5.0 million units in 2015 and 5.8 million units in 2020.
Mitsuboshi Belting to build a new transmission belt plant, planning to start operation in 2012
Mitsuboshi Belting in July 2011 announced the plan to build a new transmission belt plant in Maharashtra State via its local corporation MITSUBOSHI BELTING-INDIA Pvt. Ltd. Mitsuboshi Belting will start operation of the plant in 2012, aiming to have sales of 0.5 billion to one billion yen within five years. Its target customers will be European and Japanese OEMs as well as local auto manufacturers.
Musashi Seimitsu to build and run a new plant in 2013, while establishing a sales & purchase subsidiary
Musashi Seimitsu in October 2011 announced to build a new plant to produce transmission gears in Bangalore City via its wholly owned subsidiary Musashi Auto Parts India Pvt. Ltd. in Harayana State. The investment will aggregate to about 3.9 billion yen. Musashi Seimitsu will start production at the plant in 2012, and set up capabilities to produce transmission gears and camshafts for 1.8 million vehicles per year. The new plant will be used as a motorcycle parts plant for now. It intends to produce automobile parts as well in the future.
In November 2011, Musashi Seimitsu established a wholly-owned sales and purchase subsidiary, MUSASHI INDIA Pvt. Ltd. in Gurgaon City. It has been in operation with the capital of 20 million Rs since December 2011.
Yamashita Rubber to build a plant in India
Yamashita Rubber established a manufacturing and sales subsidiary Y-TEC INDIA in October 2011. News reports in December 2011 said that the company would build a new anti-vibration rubber plant in Rajasthan State and invest 2.0 billion yen in total. The construction will start in January 2012, planning to start operation of the new plant in April 2013. Yamashita Rubber will supply the products to Maruti Suzuki and Honda, expecting to have sales of 2.0 billion yen in FY2013 and 2.5 billion yen in FY 2014. It intends to maximize the new subsidiary to reduce production costs and cope with the high yen.
Yorozu builds a new suspension parts plant
Yorozu established a local joint venture Yorozu JBM Automotive Tamil Nadu Pvt. Ltd., and started operation of the suspension parts plant in Chennai City in December 2011. The investment aggregated to five billion yen. Despite the production capacity of about 300K units per year, the plant will be engaged in assembling components using pressed parts supplied from Thailand at the beginning. Yorozu aims to receive orders from Japanese, European and American OEMs, such as Renault-Nissan. Yorozu takes a 93.33% stake and JBM Auto System takes the rest in the joint venture capitalized at 1.5 billion Rs.
Riken to build a second plant and increase production capacity by 45%
Riken will build a second plant in a suburb of New Delhi via the local joint venture SHRIRAM PISTONS & RINGS Ltd., in which Shriram Group of India takes a 48% stake, Riken 21% and Kodbenshmidt 20%. Riken will reinforce its facilities in a phase-in manner by 2013, planning to increase production of piston rings and valve sheets by about 45% in total. Riken will invest about 2.2 billion yen.

Source: Press Releases of the above companies, and news reports


Ahresty, Eagle Industry, Diamond Electric, Toyoda Gosei, and Bellsonica to increase production...

Ahresty, Eagle Industry, Diamond Electric, Toyoda Gosei, and Bellsonica to increase production capacities, while Bridgestone increasing production items

 As for expansion of production capacities of existing plants in India, Ahresty will increase it by 50%, Diamond will increase the production capacity of engine ignition coils by 20%, and Bellsonica doubles the production capacity of auto body pressed parts.

 Eagle Industry will produce water pump mechanical seals newly at its existing plant, and Calsonic Kansei is studying the possibility to increase production items.

Japanese parts suppliers to increase production capacities and production items

Actions for about one and half years by the middle of October 2011
NTN to triple production capacity of the plant in northern India
NTN NEI Manufacturing India, NTN's subsidiary, has increased the constant velocity joint production capacity at the existing plant in Harayana State of northern India since FY2010. NTN plans to triplicate the capacity in FY2015 from the FY2009 level.
Ahresty to reinforce production capacity of die casting machine at Indian Plant by 1.5 times
Ahresty will expand the production capacity of the Indian Plant of Ahresty India Private Limited near New Delhi by 50% according to the news report in October 2011. Ahresty increased the number of die casting machines at the plant from seven to 11 in 2011 to produce parts for engines and transmissions. Products are supplied to Maruti Suzuki and Renault-Nissan. For increasing the number of die casting machines, the building area was enlarged from about 8,300 to about 11,500 square meters.
Aisan Industry strengthens the production capacity for fuel injection system components
Aisan Industry increased the production capacity for fuel injection system components at the Indian Plant in Bangalore State. It invested about 50 million yen in the plant to increase assembling machines and inspection tools by the end of 2010 according to the news release in July 2010.
Eagle Industry to make mechanical seals, and build a new plant as well
Eagle Industry build a new production line for auto parts at the existing industrial machine parts plant of EKK Eagle Products India Pvt. Ltd. in April 2011. The plant produces 1.0 million to 1.5 million mechanical seals for water pumps per year to supply them to Maruti Suzuki. It expects to have sales of about 300 million yen for the first year. At the same time, Eagle Industry obtained a plant site of 3,500 square meters to build a new plant within a couple of years.
Calsonic Kansei is considering additional items for local production in India
Calsonic Kansei is considering additional production items at the Chennai Plant of its Indian joint venture Calsonic Kansei Motherson Auto Products in Haryana State, in which Calsonic Kansei takes a 51% stake. It will select interior plastic parts and HVAC heat exchanger parts as candidates, and then, organize the supply capacity for these additional items after 2012 according to the news report in January 2011.
Kiriu to build a second line at the metal-casting plant to double production capacity
Kiriu in February 2011 announced to double the monthly production of its metal-casting plant of MUNJAL KIRIU Industries Pvt. Ltd. (MKI) in Haryana State of India to 4,200 tons. It will invest about one billion yen in the plant to build a new production line, planning to start operation of the line in May 2012. It will also produce knuckles in addition to brakes. Kiriu will also increase the stake in MKI from 33.4% to 51% in line with the increase of production to make it its consolidated subsidiary.
Sumitomo Metal to add a crankshaft production line to increase the production capacity by 2.8-fold
Sumitomo Metal in September 2011 announced to add a second forging press line at its Indian joint venture SMI Amtech Crankshaft. The second line will boost an annual production capacity to 2.2 million crankshafts from 800K units. Investment will aggregate to 1.0 billion Rs. Sumitomo Metal plans to start operation of the second line in November 2012.
Diamond Electric reinforces production facilities of the engine ignition coil plant
Diamond Electric increased by about 20% the production capacity of the Indian engine ignition coil plant of DE Diamond Electric India Pvt. Ltd in Haryana. The plant is capable of producing 2.4 million units per year. This capacity increase is intended to add production of small ignition coils individually applied to each cylinder. The investment aggregated to about several ten million yen. Diamond Electric is considering building a new plant, expecting further demand expansion, according to the news report in May 2011.
Toyoda Gosei to have start-to-finish production of body sealing members
Toyoda Gosei in December 2011 announced to begin start-to-finish production of body sealing members at the Indian production subsidiary Toyoda Gosei India Pvt. Ltd. in Rajasthan State. It aims to improve the cost competitiveness by mixing rubber materials and having extrusion molding of rubber at the local plant. It will spend 800 million yen to introduce the facilities by May 2012. In addition, an Indian company Minda will acquire a capital in the subsidiary. Toyoda Gosei intends to strengthen the business base through the capital participation by the local company. Minda will take a 12.9% stake in Toyoda Gosei India. The name of the subsidiary will be changed to Toyoda Gosei Minda India Pvt. Ltd. following its capital participation.
Toyoda Gosei has relocated the rubber extrusion machines to the Indian subsidiary from Japan and American plants to produce body sealing parts according to the news report in January 2011.
Toyota Industries to reinforce the Indian Plant by increasing the transmission case production capacity by 2.5 times
Toyota Industries will reinforce the Indian Plant of Toyota Material Handling India Pvt. Ltd. in Bangalore City at the end of 2012, according to the news report in December 2010. It will expand the plant building where transmission cases are produced to increase the 2010 level production capacity by 2.5-fold to an annual production capacity of 400K units. This capacity increase is intended to respond to Toyota which will locally purchase transmissions for the Etios. It will invest about two billion yen.
Bellsonica increases production capacity of pressed parts plant for Suzuki's subsidiary
Bellsonica strengthened the production capacity of the auto body pressed parts via Bellsonica Auto Component India Pvt. Ltd. jointly established with Maruti Suzuki. It spent about 3.0 billion yen to increase the annual production capacity by 200K units to 360K units in summer 2011. The capacity increase is intended to catch up with the increase of production by its customer Maruti Suzuki.
Yutaka Giken strengthens production capacity of Indian plant
Yutaka Giken doubled the building area of the plant of YUTAKA AUTOPARTS INDIA Pvt. Ltd. in Rajasthan State in January 2011, from which Yutaka Giken supplies products Honda, and strengthened the production capacity according to the news report in January 2011. Yutaka Giken increased the production capacities of exhaust components and brake disks for automobiles and motorcycles, respectively. It plans to continue to increase the production capacities.

Source: Press Releases of the above companies, and news reports


Gunma Seiko and Nippon Steel grant technical license to Indian suppliers; Aisin Seiki and Denso builds new R&D and sales centers; and NHK Spring acquires business

 A cold forging firm Gunma Seiko and an original plate processing firm Nippon Steel will grant their technical licenses to local suppliers.

 Japanese suppliers will also open non-production related centers in India, such as a marketing center by Aishin Seiki, design firms and technical centers of car air conditioners by Denso.

 On the other hand, Sanoh is planning to wholly own the joint venture for production and sale of tubes. NHK Spring bought out the precision spring business from a local company.

Japanese suppliers in India are active in technical licensing, increase capital, creating R&D or sales centers

Actions for about one and half years by the middle of October 2011
Aisin Seiki to localize designing to expand business with local OEMs
Aisin Seiki has design staff members reside in its Indian production subsidiary AISIN NTTF PVT.LTD. to promote localization of design according to the news report in September 2011. It intends to catch local OEMs' needs quickly and make technical suggestions based on customer needs in order to expand businesses with them.
Oiles forms a new local sales company
A bearing manufacturer Oiles formed an Indian sales company OILES India Pvt. Ltd. in Gurgaon in January 2011. Oiles takes a 99.9% stake and Oiles-East a 0.1% stake in the new company capitalized at 45 million Rs. It intends to strengthen the local business, planning to localize production in the future as well.
Kinugawa Rubber ties up with Hwseung R&A for consignment production in India
Kinugawa Rubber in July 2011 announced that it inked the business partnership agreement with Hwseung R&A of Korea. Kinugawa Rubber sells auto body sealing and hose components in India. It will study the possibility to contract out part of the production of these components to the local subsidiary of HWASEUNG HSI AUTOMOTIVED Ltd. in Chennai City.
Gunma Seiko gives cold forging technical support to New Swan
A steering parts supplier Gunma Seiko signed the technical support agreement with an exhaust and brake parts supplier New Swan, in Ludshiana, in respect with cold forging in March 2011. New Swan will build a cold forging line at its own plant in India, and Gunma Seiko will send engineers to provide guidance and deliver trainings to local engineers. For Gunma Seiko, it will be the first step to expand the business abroad, planning to maximize it as a foothold for the Indian business.
Sanoh to wholly own the Indian consolidated subsidiary
Sanoh has started studying the possibility to wholly own the consolidated subsidiary STI Sanoh India, which produces and sells automotive tubes in India. STI Sanoh is a joint venture of Sanoh and a local textile company. Sanoh takes a 56.5% stake. The Indian subsidiary has six plants in India. The partner of the joint venture revealed its intent to sell its share to focus on its core business. Sanoh attempts to conclude an agreement with respect to buying the equity within FY2011 according to the news report in June 2011.
Nippon Steel and Tata Steel to form a joint venture to produce and sell cold-rolled steel based on technical licensing
Nippon Steel in January 2011 announced to establish a production and sales company with Tata Steel Limited (TSL). It will be capitalized at 8.7 billion Rs. Nippon Steel will take a 49% stake. Nippon Steel will invest about 40 billion yen to build production facilities in the TSL's Jamshedpur iron foundry in Jharkhand State, and start operation by autumn 2013. The production facilities have an annual capacity of 600K tons. Nippon Steel plans to produce cold-rolled steel for vehicles as well as high tensile steel. In addition, Nippon Steel will license the original plate processing technology to TSL to improve quality and cost competitiveness of the local start-to-finish production.
Denso forms a new joint subsidiary for designing car air conditioners
Denso and the largest car air conditioner supplier Subros of India formed a joint subsidiary DENSO Subros Thermal Engineering Centre India Ltd. near New Delhi City in September 2010. It will be capitalized at 68 million Rs. Denso will take a 74% stake in the joint company and invest 136 million Rs. The new company will be engaged in designing car air conditioners and radiators, and provide them to Denso's local subsidiary and Subros.
Denso opens a technical center to establish a self-support local company
Denso established a technical center in its wholly owned subsidiary DENSO Sales India Pvt. Ltd. in Gurgaon City at the end of 2011. The center is engaged in developing powertrains for local OEMs and parts for low price vehicles. The investment aggregated to about 3.0 billion yen. The technical center in India is the fifth one following those in the US, Europe, Thailand, and China. Denso will triplicate R&D personnel by 2015 to promote localization of R&D, while creating a self-support organization which takes care of other related business within the subsidiary. Following these actions, Denso will change the name of the subsidiary from DENSO Sales India Pvt. Ltd. to DENSO International India PVT. LTD.
Toyota Tsusho to invest in a Japanese steel tube supplier to expand its exhaust components business
Toyota Tsusho in September 2010 announced to invest in a Japanese steel tube supplier KUMA Stainless Tubes Ltd. (Gurgaon City) in India. Toyota Tsusho will acquire a 30% stake out of 95% taken by the largest shareholder Maruichi Steel Tube. It will provide the steel tube supplier with financial as well as technical support, aiming to expand its exhaust components business. KUMA is one and only stainless steel tube supplier in India, which is capitalized at 44 million Rs. Another equity investor in KUMA is Kusakabe Electric.
NHK Spring buys out engine precision spring business from Bombay Burmah Trading
NHK Spring bought out the precision spring business (housed under a division called BCL Springs) from Bombay Burmah Trading Corporation Ltd. in Maharashtra State. The buy-out process was completed as of December 2011. For this purpose, NHK Spring established a new company NHK Automotive Components India Pvt. Ltd. in Haryana State in July 2011. The capital of the company reached 973 million RPs after the buy-out. Having business with Maruti Suzuki as its main customer, BCL Springs posted sales of 1.1 billion RPs in the year ended March 2011.
Yutaka Giken sells the plant for Tata to streamline the Indian business
Yutaka Giken sold the first plant, Yutaka Autoparts Pune Pvt. Ltd., to the local subsidiary of a French major parts supplier Faurecia in January 2011. The plant makes the parts for Tata including exhaust catalyst converters and silencers. It was sold at 20.5 million RPs. For the Indian business, Yutaka Giken plans to concentrate resources in the second plant for Honda, i.e., YUTAKA AUTOPARTS INDIA Pvt. Ltd. in Rajasthan State.

Source: Press Releases of the above companies, and news reports

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