Machine tools manufacturer Micromatic Grinding Technologies today joined hands with Japanese firm Jtekt Corp to form a joint venture for sales and after sales services in India.
The two companies today signed a JV agreement to form a new company 1— Toyoda Micromatic Machinery India Ltd — where Jtekt would have an equity participation of 75.5 per cent, while the rest would be held by Micromatic Grinding Technologies (MGT).
"Customers here need global products but with Indian prices. This will be the main focus of the JV company," MGT Chairman and Managing Director N K Dhand told reporters here.
According to the agreement, the JV in which both the companies have together infused Rs 2.48 crore, would primarily sale and would offer after-sales services of Jtekt products, imported from Japan, to the Indian customers.
"Besides sales, MGT's upcoming fourth plant in Bangalore will manufacture one product for the JV," Dhand said, adding the company would later extend the manufacturing portfolio to auto components also.
The JV is expecting a sale of eight billion yen (over Rs 320 crore) by 2010, he added.
MGT has invested Rs 25 crore in manufacturing the plant in Bangalore, which would become operational by October this year.
"The current capacity of the plant is 250 machines per annum and we are planning to expand it to 500 machines a year by 2010. This can see an additional capital infusion of about Rs 50 crore going into the facility," he informed.
