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Home arrow Defence arrow Govt approves ShinMaywa joint venture with Kailash Vahan Udyog Ltd
Govt approves ShinMaywa joint venture with Kailash Vahan Udyog Ltd Print E-mail
Written by Ganesh   
Wednesday, 10 June 2009
Mumbai : The government has cleared a proposal by Japanese auto component maker ShinMaywa Industries Ltd to design, manufacture, sell and provide after sales service for it's special purpose truck products, like tippers and garbage compactors in a joint venture with Pune-based firm Kailash Vahan Udyog Ltd.

The JV agreement was signed in Pune a few months back, by Mr. Tadashi Kaneki, President and CEO of ShinMaywa and Dr. Kailash Gupta, Chairman, Kailash Vahan Udyog Ltd.

The joint venture company will be based in Pune. ShinMaywa Industries Ltd., Japan proposed to "subscribe to the equity shares of an existing India company to carry out the activity relating to automobiles", by investing Rs 1.20 crore.

As a major supplier of vehicle bodies to all Japanese commercial vehicle manufacturers, ShinMaywa will be able to cater to the demand from Japanese CV manufacturers -  Isuzu, Nissan and Hino and other MNCs which are establishing their base in India.

In line with expansion plans in the country the JV company, Kailash ShinMaywa Ltd, is expected to set up a manufacturing facility.

With a market share of over 50% in Japan, ShinMaywa is a market leader in tippers, cement bulkers, garbage compactors and concrete mixers. The company also has interests in Industrial Machinery, Aircraft components etc. The company is hoping to tap the demand for special vehicles and Cvs which will be generated by the country's infrastructure development projects.

Kailash Vahan Udyog Limited (KVUL) was established in 1986 with the purpose of manufacturing and supplying load bodies to TATA MOTORS and Ashok Leyland in Pune and Bangalore respectively. With an annual capacity of 20,000 CV bodies, KVUL's production facilities include heavy hydraulic and mechanical presses ranging from 500T to 1030T with a capacity to process 20000mT steel per annum, modern paint shop, fabrication lines for tippers etc. Recently, the company also entered into a joint venture with Rolfo of Italy for building car carriers.

23 Proposals of Foreign direct investment cleared.

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on 22nd May, 2009, Government has approved 23 Proposals of Foreign Direct Investment amounting to Rs. 564.80 Crore (approximately).

A proposal by Sandvik Asia Ltd., Pune, to induct FDI to carry out the activity comprising of Tooling, Mining and Construction and Material Technology was among the 13 proposals have been deferred.

 
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