The Hindu Business Line : Yachiyo of Japan plans Indian subsidiary for plastic fuel tanks

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Yachiyo of Japan plans Indian subsidiary for plastic fuel tanks

Moumita Bakshi Chatterjee

New Delhi, Nov. 21 Japan-based Yachiyo Industry Co, which is involved in production and sales of automobiles and automobile parts, is planning to establish a subsidiary in India for manufacturing plastic fuel tanks for passenger cars and supplying to Honda Siel Cars India, and other affiliates of Honda Motor Co Ltd.

The company’s proposal had come up for discussion at a recent meeting of the Foreign Investment Promotion Board (FIPB), and is learnt to have received FIPB nod subject to final clearance by the Finance Minister.

Sources said that Yachiyo Industry has sought approval to set-up a wholly-owned subsidiary (99.9 per cent equity to be held by Yachiyo Industry Co Ltd and 0.1 per cent to be held by Goshigiken Co Ltd, Japan, an affiliate Co of Yachiyo) with an investment of Rs 30 crore (three crore equity shares of Rs 10 each) for undertaking specific activities in automobile components segment.

This includes developing high performance lightweight fuel tanks to meet requirement of car manufacturers in India utilising material formulation technology provided by Yachiyo, and producing various automobile parts to supply to car manufacturers such as Honda.

It is pertinent to mention here that Yachiyo Industry Co has already given a licence to Rasandik Engineering Industries India, for use of its technology in India with regard to steel fuel tanks manufacturing. The licence was non-exclusive and non transferable and could not be sub licensed. The technology collaborator Rasandik Engineering has given a conditional no-objection certificate to the latest proposal by the company.

1953-established Yachiyo Industry Co develops, manufactures and supplies essential parts to Japanese automobile manufacturers. It also manufactures many models of completed light cars. It is now globally supporting Honda Motors Co Ltd as one of the most important company in the Group.

Yachiyo Industry Co has developed and owns technical know-how and IPR in respect to the technology which it uses to manufacture parts of automobile manufactured by Honda Motors Co Ltd, Japan.

The knowledge pertains to the manufacture of fuel tanks, sunroofs, bumpers, rear beams, bumper beams, door hinges, inner pillars, motor cycle parts and also the manufacture of completed vehicles.

Currently FDI upto 100 per cent is allowed for the proposed activity under the automatic route. However, the proposal attracts Press Note 1 (2005 series) and required FIPB nod. The proposal was considered within the conditions given in No-objection certificate by the existing technology collaborator, sources pointed out.

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