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US auto parts maker forms 60:40 JV with Remsons

US auto parts maker forms 60:40 JV with Remsons
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First Published: Thu, Oct 18 2007. 07 07 AM IST
Updated: Fri, Oct 19 2007. 12 29 PM IST
Mumbai: The US-based automotive components manufacturer Orscheln Products Llc. is forming a 60:40 joint venture with India’s Remsons Industries Ltd to set up a 3,000 sq. ft greenfield facility in Daman.
Remsons already has a manufacturing plant in Daman. The new plant will share manpower and engineering capabilities with Remsons’ existing facility there.
“The joint venture will address Indian and international automotive manufacturers, construction equipment makers and marine applications,” Remsons managing director Krishna Kejriwal said. “Various international manufacturers have already indicated to Orscheln their interest in sourcing products from the Indian joint venture,” Kejriwal said, but declined to give client names as he is bound by confidentiality clauses.
The actual investments, to be financed through equity and debt, is yet to be worked upon between the partners. But Kejriwal said he foresees an initial investment of up to Rs10 crore over a three-year period.
Remsons has automobile manufacturers such as Hero Honda Motors Ltd, Tata Motors and General Motors India Pvt. Ltd among its customers.
Remsons has also entered into a distribution agreement with Orscheln, whereby it will sell its products across North America through Orscheln’s sales network.
The joint venture and the distribution agreement will allow Remsons to expand its product portfolio, give it access to new technology and a greater foothold in overseas markets. For Orscheln, this will translate into its expansion into Asia.
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First Published: Thu, Oct 18 2007. 07 07 AM IST