Pune, July 28
THE Kalyani group has sold its 40 per cent stake in Kalyani Brakes Ltd to its foreign partner, the Bosch group, for Rs 285 crore.
Kalyani Brakes is a joint venture between the Kalyani Group and the Bosch group, each holding 40 per cent stake and the rest being held by the public.
Talking to presspersons, Mr V.K. Viswanathan, Joint Managing Director, Mico Bosch India, who chaired the annual general meeting of the company, said with this transfer, the Bosch group has acquired controlling interest in Kalyani Brakes.
He added that consequent to the transfer of shares, Mr Baba N. Kalyani, Director and Chairman of the company, has relinquished his office as of July 16.
Mr Viswanathan said it would take six months for the board to decide on the new head for the company. He said that there were already three Bosch members Mr Viswanathan, Mr Albert Hieronimus and Mr Johannes Schaefer on the board along with Mr S.S. Vaidya, an independent director. Asked whether the name Kalyani Brakes Ltd would continue, Mr Viswanathan said there is a proposal to change the name to Bosch Chassis Systems India Ltd, which would have to be approved by the board of directors. On future plans, Mr Viswanathan said the thrust would be on increasing exports from the facility.. He added that the existing facility would be upgraded. The investment, which during the last fiscal had been Rs 26 crore, would be scaled to Rs 40-45 crore during the current fiscal.
He said the objective was to realise at least one-fourth of the total turnover from exports, from the present 7-8 per cent.
Mr Viswanathan said the parent company would also be introducing newer technologies which would "depend on the market developments and would require minimum quantity to justify the production here".
He said the company would now look at production of modern braking systems, including manufacture of the antilock braking system, ABS and newer safety features at the existing facility.
He added that the board of directors has recommended a dividend of 120 per cent for the year 2004-05, same as last year.