The Hindu Business Line : FIEM Industries to set up new R&D facility in Delhi

Future plans
Export oriented unit in Hosur, Tamil Nadu
Manufacturing facility in Nalagarh, Himachal Pradesh
The Hosur unit will be made at an investment of Rs 6.72 crore and will be dedicated to exports to their international joint venture partners

Mumbai , Sept. 14

FIEM Industries, manufacturers of automotive lighting and signalling systems, is about to invest in a R&D facility in New Delhi.

The company has an existing R&D facility in Kundli, Haryana and an international facility in Japan. The idea behind the new facility is to have better understanding, co-development of novel technology and coordination with its two new joint ventures (Zadi Divisione Fanaleria CEV Spa - Italy and Aspock Holding GmbhH - Austria), said Mr J.K. Jain, Chairman and Managing Director, FIEM Industries. Mr Jain, however, did not wish to disclose the amount invested on the new facility.

Besides the R&D facility, it has plans to set up an export oriented unit in Hosur, Tamil Nadu and a manufacturing facility in Nalagarh, Himachal Pradesh. The former unit will be made at an investment of Rs 6.72 crore and will be dedicated to exports to their international joint venture partners (Zadi & Aspock).

The unit will make automotive mirror plates among other automotive products. The Nalagarh facility will be made at an investment of Rs 22 crore to cater to the growing domestic market.

These investments are the primary objective behind the company's decision to enter the capital market with an initial public offering that opens on September 21 and closes on September 27. The public issue is of 4.1 million shares of face value of Rs 10 each with a price band of Rs 125-Rs 145.

Post issue, the promoters will hold 64 per cent of the total share holding.

The company has been in the automotive industry since 1989 and has had international joint ventures since 1996 with companies such as SL Sung San Corp (Korea) and Daewoo Motor India.

However, due to Daewoo's poor performance and early exit from the country, the joint venture now works for the local partner.

FIEM Industries owns 90 per cent of the company's holdings. Apart from the new joint ventures in Italy and Austria, it had also entered into a joint venture with Korea Air Conditioners, South Korea for manufacturing of automotive radiators and heating elements.

In the domestic market, the company is a market leader in the two-wheeler segment with 79.19 per cent share of its total turnover.

The three-wheeler (4 per cent), commercial vehicle (3.94 per cent) and passenger car (12.83 per cent) constitute the remaining share of the total turnover.

More Stories on : Research & Development | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page