New Delhi: Maruti Suzuki India Ltd, Japan’s Suzuki Motor Corp and Fiat Group company Magneti Marelli have entered into a three-way joint venture agreement for making electronic control units (ECU) of diesel engines at an investment of €15 million (Rs75 crore).
The three companies would jointly invest in setting up a plant at Manesar, Haryana, expected to be operational by end of calendar year 2008. The facility, when fully operational, would have a capacity to produce 500,000 units a year, 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% stake in the new company while SMC and MSIL would hold 30% and 19% 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 4.5 billion Euro in 2006.