Motherson Sumi enters into Joint Venture with Calsonic Kansei

Motherson Sumi Systems Ltd has announced that the Company has entered into a joint venture with Calsonic Kansei to meet the growing needs of the automotive manufacturers in India including the new car makers who have announced their plans to set up manufacturing base in India. Calsonic Kansei (www.calsonickansei.co.jp) is a global comprehensive automotive parts manufacturer specializing climate control systems, power train cooling products, exhaust systems, Body Control Modules, Cockpits and interior components, assemblies and modules.

The proposed name of the Joint Venture company is Calsonic Kansei Motherson Auto Products Ltd. (CKM) in which Calsonic Kansei will have 51% and the Company will have 49% share. The production is planned to be started in 2009 starting with manufacturing / sales of automotive air - conditioning units for Japanese car makers in India.

The Joint Venture will get advantage of strong synergies as Calsonic Kansei will provide product and manufacturing technology which will be supported by Company's high performance development / production engineering in the fields of polymer moulding and tool making. The business will be further complimented by the well established manufacturing facilities of the Company at various locations.

This is an important event for both the Company and Calsonic Kansei in the growing automotive market of India. This joint venture is in line with Company's stated policy of bringing the best for its customers by aligning with the global technology leaders. The Company remains committed to provide solutions and enhanced value to its customers by increasing the content per car.

Source : Equity Bulls

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