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Auto components maker Anand today said it will merge two joint venture (JV) entities formed with Korea’s Mando Corporation into one company, with a combined turnover of over Rs 1,235 crore.
“Anand today entered into an agreement with Mando Corp Korea for the merger of the two joint venture companies partnered by the two groups — Mando India Ltd and Mando Steering Systems India Ltd,” the domestic firm said in a statement.
The new company is proposed to be known as ‘Mando Automotive India Ltd’ with a combined turnover of over Rs 1,235 crore ($200 million), it added.
“The consolidated operations of the new company are slated to commence in April 2013, employing around 9,000 people. This merger has been effected with a view to achieving marketing and purchase synergies, while serving as a single point source for key chassis components for customers of the two entities,” the statement said.
The new company will be offering products such as brakes, suspension and steering systems.
Anand and Mando have been partners since 1997.
Their first Joint Venture — Mando India Ltd — was set up to manufacture brakes at Chennai and subsequently introduced suspension products in 2005.
The Indian firm recently formed a second JV with Mando Corporation after having acquired a stake in Mando Steering Systems India Ltd.
Targeting sales of Rs 100 crore by 2016, the company manufactures electric power steerings at its facility in Chennai.
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