Hero Motors, a part of the Hero Group, has inked a joint venture deal with Japan's Sumitomo Corporation to manufacture disc brakes for four wheelers, which will have an enterprise value of Rs 240 crore.The new joint venture - Munjal Kiriu Industries, will see the Munjals promoted Hero Motors holding 66% stake while 33% will be hold jointly by Sumitomo and its group company Kiriu Corporation - Japan's second largest disc brake manufacturer."Ferrous casting outside India is increasingly becoming expensive and with the joint venture we want to take the lead in manufacturing of low cost value-added disc brake systems with Kiriu's technology," Pankaj Munjal, MD, Hero Motors said here.As part of the formation of the joint venture, Hero Motors has hived off its manufacturing plant at Manesar into the JV. It has an installed capacity of producing 35,000 tonne of machined castings per annum. Currently, Hero Motors supply components to players such as Bosch, Valeo and Sona Koyo.The company expects to add new customers, specially the global auto majors like Honda, Nissan, Renault and Suzuki through its existing international relationship, Toshio Nakagawa, President & CEO, Kiriu Corp said.Asked if Hero Motors, which is already into other auto components business such as gears and transmissions, was looking to foray into other domains, Munjal replied in the affirmative."We are focusing on alternate fuels and currently we are in talks with an European partner for a joint venture," he said, without elaborating.
