India Pistons inks JV with German firm
Auto component manufacturer India Pistons Ltd has entered into a 50:50 joint venture with German company Mahle GmbH to make pistons for advanced engine applications.
Part of the Rs.52-billion, city-based Amalgamations group, India Pistons has hived off its 3.2 million pieces per annum piston plant at Maraimalai Nagar near Chennai for this purpose.
The joint venture company, Mahle India Pistons Ltd, is expected to double its capacity in three years.
"The partners envisage an investment of Rs.1.2 billion for the venture in the coming years," Gautam Venkataramani of India Pistons told IANS here.
"I am not in a position to disclose the plant valuation figure," he added.
Mahle India Pistons Ltd is expected to achieve a turnover of Rs.1.6 billion in 2008 employing a workforce of 300.
The euro 4.3-billon turnover Mahle group is one of the 30 largest automotive suppliers in the world.
The JV will primarily focus on pistons for engines requiring compliance with emission norms that are becoming progressively stringent, like Euro IV and above, and advanced design pistons like oil-cooled gallery pistons for diesel engines for automotive applications.
According to Venkataramani, India Pistons is expected to close this fiscal with a turnover of Rs.3.25 billion.
The Amalgamations group last month bought out the 30 percent stake held by Federal Mogul Corp in India Pistons.
Source:
