Casio Computer Company, Japan, which manufacturers and markets pagers, watches, digital diaries, is buying out Japan-based Mitsui & Co's 3 per cent in its Indian subsidiary Casio India Co Ltd.
According to company sources, after the acquisition the arm will become a wholly-owned subsidiary of Casio Computer. The existing share capital of the company is Rs 30 crore. Casio's holding is valued at Rs 29.10 crore, while Mitsui's stake is worth Rs 90 lakh.
Casio Computer is also setting up a software development unit for producing embedded software for digital products and also for fresh development of software and algorithms for future commercial applications.
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It has sought government permission to receive overseas stock and re-assemble them in India with India-specific markings and holograms and issuing Indian MRP (maximum retail price) tags. Full warranty of the products will be undertaken by Casio India.
Mitsui had agreed in-principle to quit the venture in favour of Casio. A company official had earlier said that during the initial stages Mitsui had become Casio's partner since Japanese trade partners also invest in equity. However, since Casio has established itself, Mitsui is pulling out but will continue to remain a trade partner.
Casio India manufactures and markets radio pagers and its parts, digital diaries, calculators, electronic musical instruments, watches, time pieces, clocks and their parts.
Speaking of the software development business, the company official said that it was being done to further consolidate the company's business presence in the country. Casio's high technology digital products use embedded software, which drive the applications of all its products.
The software development business will be undertaken by the existing subsidiary. A separate division will be set up to distinguish it from manufacturing activities.