Maruti Udyog Ltd (MUL)has entered into a joint venture with Japan's Bellsonica Corporation to manufacture car body components, including high tensile steel parts.
The Japanese company will hold 70 per cent in the JV, Bellsonica Auto Component India (BACI), while MUL - in which Suzuki Motor Corporation owns 54.2 per cent - will hold the rest.
The joint venture company will have a paid-up capital Rs12 crore and will manufacture body metal components for Maruti's vehicles, the release said. The plant will be located alongside MUL's new car plant in Manesar, Haryana.
The proposal has been approved by Foreign Investment Promotion Board and Bellsonica Auto Components India is expected to go on stream in November 2007.
Bellsonica has been providing technical support to MUL's JV Jay Bharat Maruti Limited(JBML), which will continue.
The proposed joint venture would be a core supplier to Suzuki's automobile ventures in India, including Maruti, and the recently reborn two-wheeler joint venture, Suzuki Motorcycles India.
The company would be engaged in manufacturing two- and four-wheeler sheet metal, chassis, structurals, and rotating components, and would provide maintenance and after-sales services to installed equipment.