The Hindu Business Line : Kalyani Brakes to form joint venture with Italian Brembo

BOSCH's Indian subsidiary, Kalyani Brakes, and the Italy-based Brembo have signed a 50:50 joint venture agreement for manufacture and sale of braking systems for two-wheelers.

A press statement from Bosch said the total investment of the two partners will be 13 million euros. The turnover, put at 20 million euros in the first year, is expected to double in the next four years.

The new company, KBX Motorbike Products Pvt Ltd, will be based in Pune.

Kalyani Brakes will integrate its existing two-wheeler brake production into the joint venture. Initially, the products will be sold domestically to feed the rapidly growing two-wheeler market, whose size is estimated to be around six million units. As per the agreement, signed on Monday, Brembo will contribute licences and technology and will have the industrial leadership. The deal has to be approved by the Antritrust Authorities and the Foreign Investment Promotion Board of India. The Bosch Group recently doubled its stake in Kalyani Brakes Ltd to 80 per cent.

Kalyani Brakes manufactures conventional brake systems and components with plants in Jalgaon, Pune, and Manesar. The company generated sales of 63 million euros in 2004-05 and has about 1,800 associates.

Apart from its holdings in Kalyani Brakes, Bosch's other subsidiaries are Motor Industries Co Ltd (MICO), Robert Bosch India Ltd, and Bosch Rexroth India Ltd. The Bosch Group employs some 14,000 people in India, including those in Kalyani Brakes.

In 2004, the Indian Bosch subsidiaries achieved sales of 548 million euros. Brembo has been licensing some design for motorcycle braking systems, without brand, to Kalyani Brakes since 1999.

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