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Our Bureau

Chennai, Feb. 15

The €46-billion global automotive component major Robert Bosch GmbH has established a joint venture with the Chennai-based Igarashi Motors India Ltd (IMIL) to develop and manufacture DC motors and systems for wiper, HVAC (heating ventilating and air conditioning), engine cooling and window lift applications. Bosch will hold 51 per cent shares, while the rest will be with IMIL.

The spokesperson of Robert Bosch GmbH told Business Line that the joint venture company would be headquartered in Chennai and “the target market for JV’s products is India. However, we do not rule out the possibility exporting the product in the long-run. Concrete plans are yet to be discussed.”

It may be noted that this was the first investment of the German company in Tamil Nadu, which is emerging as a hub for automotive industry. Though the quantum of investments was not disclosed, the spokesperson mentioned that with existing customers, the sales of the joint venture company would be running “into Euros eight digits” from 2009. By the end of 2008, the company would have around 100 employees.

The technological know-how and long standing contacts with automotive customers in India will come from Bosch, while IMIL’s contribution will be in the form of getting associates (workforce), local supplier network and testing equipment.

To a question on the most striking reason for Bosch to choose IMIL, the spokesperson said the partner had been operating in Chennai for over a decade now and established a sound supplier base. Besides, the distribution costs were low in Chennai. Moreover, IMIL had well-developed human resources, which could support the new company also, the spokesperson added.

Bosch Ltd in India will support the joint venture company in terms of offering legal, environmental and aftermarket services.

The Managing Director of Bosch Ltd and Bosch representative in India, Mr V.K. Viswanathan, said, “with this joint venture, we are expanding our range of products manufactured locally in India.”

More Stories on : Alliances & Joint Ventures | Automobile Components

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