The Hindu Business Line : Aditya Auto plans joint venture with US co

Bangalore April 23 The US-based Dura Automotive and Aditya Auto Products will set up a joint venture in India to manufacture auto parts for the Asian market.

Initially, Aditya Auto Products will manufacture Dura's components under licence but based on the sales milestones each year, the current technical tie up will be converted into a joint venture. "For the joint venture to happen, we have set ourselves a sales target of $5 million each year for the next three years," Aditya Auto's Chairman, Mr N. Reguraj, told Business Line.

Dura Automotive, which expects to come out of bankruptcy by October this year, will contribute designs, intellectual property and technical resources for the joint venture. While Dura will pick up a 51 per cent stake, the rest will be with Adiyta. However, the management control will be with the Indian partner, Mr Reguraj said. As per the current arrangement, Aditya will manufacture Dura products such as pedals, parking brakes, shifters and spare tire carriers for domestic as well as other Asian markets. Aditya will set up a separate subsidiary for this purpose, he said.

Tech centre

Dura's Chairman and President and Chief Executive Officer, Mr Lawrence A Denton, said Dura may also look at setting up a technical centre in India once the joint venture is set up.

He said it was only the US and the Canadian operations of Dura which are going through bankruptcy proceedings and hence this new venture has been routed through the Asian arm of the company.

More Stories on : Alliances & Joint Ventures | Automobile Components

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