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Home arrow News arrow Auto component arrow Japan's Kiriu Corp ups stake in Munjal Kiriu Industries from 33.4% to 51%
Japan's Kiriu Corp ups stake in Munjal Kiriu Industries from 33.4% to 51% Print E-mail
Written by Vijay   
Friday, 18 February 2011
Mumbai: Japan's Kiriu Corporation, an affiliate of Sumitomo Corporation, increased it's stake in Munjal Kiriu Industries Private Limited (MKIPL - its joint venture company in India) from the previous 33.4% to 51%. Hero Motor Ltd will be reducing stake from 66.60% to 49%. The parent companies also changed its capital structure.

At the shareholders meeting, a resolution was also made for expansion of the casting capacity for automotive ferrous casting parts. The joint venture company will invest Rs 160 crore for expansion of its existing facility in the next two years.

MKIPL will invest in a second molding line and 2 new electric furnaces. This capacity increase will result in adding capability for new ductile iron products like knuckles. By May 2012, the capacity will be increased by 2,200 tons per month, taking the total to 4,200 tons a month (including the existing line).

MKIPL is receiving orders beyond it's expectation, including new products from various customers, who are expanding their capacities in the present and coming years. The company expects a possible shortfall of capacity in the near future. The expansion is to cope with such higher demand from customers.

Pankaj Munjal, managing director of Hero Motors Ltd, has been elevated to chairman of MKIPL. Tetsuo Saitou,Former Senior Vice President has been appointed as  managing director of MKIPL.

Having gained management control of the company, Kiriu will appoint the top management at MKIPL to enable quicker management decisions and to correspond in a timely manner with the requirement from major Japanese auto makers who have enhancement plans. The new managerial organization with Kiriu's initiative will be efficient and robust to improve quality and productivity by rooting Kiriu's manufacturing way.

Munjal Kiriu Industries Private Limited, established in December 2007, is located at Manesar in Gurgaon, Haryana.

Kiriu group has 3 domestic facilities in Japan and 7 overseas facilities in China, Thailand, Indonesia, Korea, USA and Mexico after India. All facilities are being operated under the "Ikki-seisan" philosophy, which specifies total integrated manufacturing process from design, production and tool manufacturing. The company is targeting to be "World-leading brake disc and drum supplier" with a capability to offer suitable technical proposals with their cutting-edge technologies.

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