Rico Auto and Magna Powertrain to set up JV in India

Rico Auto Industries Ltd has announced that the Company and Magna Powertrain, an operating unit of Canadian-based Magna International Inc. and a leading global automotive powertrain supplier have signed an Agreement for establishing a new Joint Venture Company in India to manufacture Oil and Water Pumps with Aluminium Housings for automotive engine applications for Indian and European markets. The new Joint Venture Company will have equity base of 50:50. The project is expected to start manufacturing in early 2009.

Magna Powertrain, an operating unit of Canadian-based Magna International Inc. and a leading global automotive powertrain supplier in the world. They design, develop and manufacture automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. Their capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; as well as complete vehicle engineering and assembly. They have approximately 83,000 employees in 229 manufacturing operations and 62 product development and engineering centres in 23 countries.

The Company is amongst the leading players in the Indian Auto Components Industry. The Company supplies Aluminum and Ferrous Machined Components and Assemblies to Original Equipment Manufacturers (OEMs) across the globe.

The stock was trading at Rs.34.05, up by Rs.0.45 or 1.34%. The stock hit an intraday high of Rs.35.55 and low of Rs.33.50.

The total traded quantity was 69630 compared to 2 week average of 171623.

Source : Equity Bulls

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