Magneti Marelli, Suzuki Motor Corporation and Maruti Suzuki India have signed an agreement for the creation of a joint venture (JV) in India, aimed at the production of electronic control units (ECU) for diesel engines.According to an official release issued by Maruti Udyog to the BSE today, as per the agreement, Magneti Marelli will contribute 51% of the share capital in the JV, Suzuki 30% and Maruti 19%.The initial investment is expected to total approximately Euro 15 million (about Rs 75 crore). The project will be funded through a mix of equity and debt, the release said.The industrial facilities of the joint venture firm will be located at Manesar in Gurgaon, approximately 40 km southwest of New Delhi. It will be part of the Suppliers' Park spread over 100 acres, being set up by Maruti Suzuki.The start of production is scheduled for the end of 2008 (calendar year). As part of the objectives, the production of this plant should reach a total of about 500,000 control units per year, when working at full stretch. The electronic control units produced in Manesar will be initially used for Maruti Suzuki diesel cars and, later on, will also cater to other car manufacturers, the release added.
