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October 11, 2007 14:48 IST
Maruti [Get Quote] Suzuki India Ltd, Japan's Suzuki Motor Corp and Fiat Group company Magneti Marelli have entered into a tripartite joint venture agreement for making electronic control units of diesel engines at an investment of euro15 million.
The three companies would jointly invest in setting up a manufacturing unit at Manesar in Haryana, expected to be operational by end of calendar year 2008. The facility, when fully operational, would have a capacity to produce five lakh units per annum, MSIL said in a statement.
The manufacturing unit would be part of the Suppliers Park being set up by MSIL at its campus in Manesar.
Magneti Marelli would hold a majority 51 per cent stake in the new company while SMC and MSIL would hold 30 per cent and 19 per cent respectively, the statement said, adding, the project would be funded through a mix of equity and debt.
ECUs produced in Manesar would be initially used to meet internal demands of MSIL diesel cars and later would also cater to other car manufacturers.
"The joint venture with Suzuki and Maruti significantly strengthens an important partnership already in existence, giving the car maker the possibility to rely on competitive systems featuring cutting-edge technology and the components maker the chance to increase its presence in a strategic and fast-growing market," Magneti Marelli CEO Eugenio Razelli said in the statement.
Magneti Marelli, a part of Fiat Group, designs and produces high-tech components and systems for motor vehicles.
The company has 45 production facilities, nine R&D centres and 27 application centres spread in 16 countries and has a turnover of euro 4.5 billion in 2006.
The Maruti Saga
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