• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Moumita Bakshi Chatterjee

New Delhi, Feb. 6 Japan-headquartered Yushiro Chemical Industry, a manufacturer of metalworking fluids, is planning to set up a wholly-owned subsidiary in India with a view to further expand its business with clients such as Toyota Kirloskar Motor, Suzuki Powertrain India, Maruti Suzuki, Honda Siel and Yamaha Motor India, amongst others.

The company, in November 2005, has a joint venture company in Chennai with its Korean partner Buhmwoo Chemical Industry Co Ltd, to cater to the automotive manufacturers located in India such as Hyundai Motors India Ltd. Buhmwoo Chemical Industry holds 76.52 per cent stake in the joint venture ‘Yushiro Buhmwoo India Co Pvt Ltd’, while Yushiro Chemical Industry has 23.48 per cent shareholding. However, Yushiro does not have any technology collaboration license agreement or technical collaboration agreement with the joint venture company.

Yushiro is now proposing to set up a company in northern India for supply to its clients products such as metalworking oils and fluids (cutting and grinding oils and fluids, forming oils and fluids and surface treatment agents); products for hi-tech area (cutting oils and fluids for silicon/crystal/ceramics and cutting oils and fluids for non-metal materials; and products for related areas, sources said.

Initially, Yushiro India would function as a sales company to import and sell the products in Indian market until they set up production facility and start commercial production in the country.

Under the current policy, a prior approval from the Foreign Investment Promotion Board (FIPB) is required under Press Note 1 (2005 series), since the proposed company in India would manufacture the products in the same field as the products manufactured by YBI.

Yushiro has already obtained a ‘no objection certificate’ from Yushiro Buhmwoo (India) co Pvt Ltd, sources added.

More Stories on : New Projects | Chemicals

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

Stories in this Section
Meet on Competition Act highlights industry concerns

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line