Engineering and construction major L&T is planning to enter the heavy industrial tyre business in collaboration with Japanese heavy machinery manufacturer Mitsubishi Heavy Industries (MHI).
L&T has initiated discussions with MHI to form a joint venture that would manufacture a wide range of heavy industrial tyres in the country, a source close to the development said.
Delegations from both the companies will meet soon to take the matter forward, the source said.
"This would bring in a good blend of high-technology from Japan and low-cost manufacturing from India. The JV would also help to create a great synergy in L&T's construction business," the source said.
It is understood that this collaboration will perform manufacturing and assembly with support from MHI's Industrial Machinery Business, Technology & Solutions Division in Hiroshima.
It will cater to domestic customers, including high-end models and machines, to produce tyres for heavy-duty construction vehicles, he said.
This activity forms a part of L&T's heavy engineering business, which has been organised under self-reliant Strategic Business Units, each specialising in different product lines, the source added.
When contacted, an L&T spokesperson declined to comment on the issue.
Earlier, MHI launched local manufacturing of rubber tyre production machinery in China with the establishment of a wholly-owned subsidiary, Changshu Ryoju Machinery.
"We are looking for an Indian partner to provide support in manufacturing industrial tyres. Currently, we are in talks with various companies including L&T for the same," MHI's Senior Vice President and General Manager Yoichi Kujirai told PTI here on the sidelines of a conference here.
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