Japan's Tsubaki acquires 51% in Mahindra Conveyor Systems
04 August 2014
Tsubaki Group, Japan, has acquired a majority stake in Mahindra Conveyor Systems Pvt Ltd (MCS), a subsidiary of Mahindra & Mahindra and a leading supplier of material handling equipment and systems.
The Japanese group already owned 8.5 per cent in MCS under a tie-up for technical knowhow and has now acquired another 42.5 per cent in it, raising its stake to 51 per cent.
MCS said the acquisition will help the company make inroads into new markets in Asia, Africa, the Middle East and Europe.
MCS will be renamed as Mahindra Tsubaki Conveyor Systems Pvt Ltd.
''The joint venture will enable us to carry out large-scale manufacture and sale of Unit Handling Systems for supplies not only in India but also to markets in Asia, Africa, West Asia and Europe. We will also actively invest in people and technology for growth of the joint venture,'' Yohei Kataoka, senior advisor, Tsubakimoto Chain Co, said.
Kataoka said Mahindra Conveyor Systems has emerged as a complete solution provider for material handling systems for the cement, power, chemicals, mineral processing and auto sectors and the JV will help scale up manufacture and sale of unit handling systems not only in India but to markets in Asia, Africa, the Middle East and Europe.
''We will also actively invest in people and technology for growth of the JV,'' he said
''Our partnership with Tsubaki in MCS is an opportunity to service our customers more efficiently and brings together talented technical and management teams. We are excited about MCS' future in this new combination and look forward to working together on its growth and value creation,'' said Zhooben Bhiwandiwala, executive vice-president and managing partner - Mahindra Partners Division, Mahindra & Mahindra Ltd.
He said the partnership between the two spans over two decades and the venture will see the partnership enter a new phase.
Tsubaki supplies equipment to a variety of users from manufacturing plants, warehouses and research facilities across a very wide spectrum of industries including automotive, steel, appliances, beverage, IT, pharmaceutical, etc.
MCS, which specialises in supply of bulk material handling equipment and systems to cement and other process industries, has recently diversified into supply of unit handling systems comprising of conveyors for auto and auto component manufacturing. This includes highly advanced conveyor systems for paint shop, vehicle assembly and other requirements.
''The company will now bring this expertise to the JV which will immensely benefit our Indian customers,'' said Ravindra Vaidya who has now been elevated to the post of managing director of MCS.
With annual sales of 178 billion yen or $1.7 billion for FY'14 Osaka-based Tsubaki is the world's premiere manufacturer and developer of power transmission products, with strong market positions in premium-quality chains, power transmission units and components, and automotive timing chain drive systems