Robert Bosch in tie-up with Igarashi Motors
16 Feb 2008
Global automotive component major Robert Bosch GmbH has entered into a joint venture with Chennai-based Igarashi Motors India (IMIL) to develop and manufacture DC motors and systems for wiper, HVAC (heating ventilating and air conditioning), engine cooling and window lift applications.
Robert Bosch GmbH will hold a majority stake in the venture with 51 per cent stake while 49 per cent will be with IMIL. The technological know-how and long standing contacts with automotive customers in India will come from Bosch, while IMIL's contribution will be in the form of getting associates (workforce), local supplier network and testing equipment.
The JV will start operating in the second half of this year and will have about 100 employees by the end of the year.
V K Viswanathan, managing director, Robert Bosch India, said, "With this JV, we are expanding our range of products manufactured locally in India. In this way, we offer our local customers the best possible support in the further motorisation of India."
K K Nohria, chairman of Igarashi Motors India, said, "Technologically, Igarashi and Bosch are a perfect fit, with each ones' strength complementing the other. Together, we want to exploit the market potential of DC motors and other automotive components in the Indian market."
According to officials from Robert Bosch GmbH the joint venture company would be based in Chennai and would sell its products in the domestic market to begin with. The company will also explore the possibility of exporting products in the long-run.
The German company did not reveal the exact amount of investment to be made in the joint venture. An official of the company said the joint venture would be able to sell components to the tune of eight digits of euros from 2009.
This is the first investment of the German company in Tamil Nadu.
Robert Bosch officials said it has chosen Igarashi Motors because the latter has been operating in Chennai for over a decade now and has established a sound supplier base. Apart from this distribution costs are low in Chennai.
In India Bosch will support the JV by offering legal, environmental and aftermarket services. Bosch has been manufacturing components in India since 1954 with 11 manufacturing sites and four development centres.
