NEW DELHI: Auto component maker Fiem IndustriesBSE -1.70 % is in the process of signing at least two new joint ventures for product diversification, and is tapping newer opportunities as it eyes a four-fold growth in its revenue in the next four to five years.
The Sonepat-based auto parts maker will be signing a JV with Honda Motor Co-owned firm Honda Locks soon. “This joint venture will help us leverage the opportunity in sensor technology, automotive locks, etc,” JK Jain, chairman & MD of Fiem Industries, told ETAuto.
While the company is yet to decide on the investment pattern in the JV, it will use the existing land at Tapukara to make the component under the new company. “The investment will about Rs 25 crore in the next one year, mainly on machinery,” Jain said.
According to industry sources, Fiem is also in the final round of talks with another Japanese component manufacturer Toyo Denso to sign a joint venture for manufacturing automotive switches, etc.
“The two companies are in the final round of talks and will ink an agreement in the next few weeks,” a source close to the development said, adding that the component maker is aiming at Rs 4000 crore revenue by 2020.
Fiem Industries also signed Technology Licence and Assistance Agreement” with Aisan Industry Co., Ltd., Japan, and Toyota Tsusho Corporation, Japan, a few days ago for manufacturing of Canister a few days ago. The collaboration is strictly based on royalty.
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Source: Economic Times
