Auto component maker Elconconnectors Cables on Tuesday announced formation of a joint venture with Indonesia's PT Banshu Group and PT Askara Internal to manufacture wiring harness in India.
The companies will invest Rs 20 crore to set up a manufacturing facility spread over 45,000 sq ft in Greater Noida, the partners said in a statement.
The facility will also house a research and development centre, it added.
Elconconnectors Cables will hold 55 per cent, PT Banshu Electric Indonesia 30 per cent and PT Askara Internal 15 per cent in the newly formed JV, named Elcon Banshu Wiring System Pvt Ltd (EBWS). It will manufacture customised wiring harness for all the automotive OEMs, it added.
The JV will be led by Elconconnectors Cables Managing Director Vishal Sharma.
Commenting on the JV, Sharma said, "Our focus is to establish EBWS as quality supplier as per the BS-VI standard and contribute to OEMs as an engineering partner".
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Banshu Indonesia Owner and Director Deddy Harsono said, the BS-VI emission norm implementation from April 2020 in India is a significant potential and opportunity for wiring harness manufactures who can supply quality products.
PT Banshu Electric Indonesia President Director Akihiko Yoneda said, the JV will enable the partners to reach a wider market and cater to the demand of one of the fastest growing automotive markets.
"The demand for the 2-wheelers in India by 2020 is estimated to be 21 million units, we are gearing up for this future demand," Yoneda added.