Japanese major Kobe Steel today announced plans to establish by June a company to sell welding consumables and provide sales support and maintenance services for welding robot systems in India.
It said Kobelco Welding India Pvt Ltd (KWI) would be based in Gurgaon, an industrial hub on the outskirts of New Delhi. KWI would be capitalized at 5 million rupees (about 9 million yen).
Kobe Steel would hold an 80% share in KWI, while group companies Kobe Welding (Singapore) will hold 10% and Taseto Co will hold the remaining 10%, it said.
KWI would be operated by a staff of five people, including two Japanese.
In addition to marketing, the company would search for new sources of raw materials for welding consumables and support procurement, considering the growing demand for welding consumables in India.
"As many power plants are planned to be constructed, demand for welding products in the energy field is expected to grow," Kobe said in a statement.
The company said its Welding Business anticipates rise in sales, mainly for high value-added welding consumables, which are one of its strengths.
"For Japanese users in the heavy electrical machinery, construction equipment and automotive fields that have already entered India or plan to do so in the future, it is urgently necessary to build a framework to provide total support in India for not only welding consumables, but also welding robot systems," it said.
In addition, the Welding Business intends to develop new sources of wire rod and fluxes, the raw materials used to make welding consumables, said the leading Japanese steel group.
"To strengthen its cost competitiveness, the Welding Business needs to find new suppliers of raw materials and support procurement," it added.
KWI would enable the Welding Business to address the growing Indian market directly and provide the potential for further development, said Kobe Steel.
"The new company is positioned as a strategic operation that will strengthen the Welding Business’ marketing capabilities in India and promote effective marketing in coordination with operations in Southeast Asia", it said.
