Yuken Kogyo Company Ltd of Japan (YKC) is looking at increasing its stake in its subsidiary, Yuken India, to 51 per cent from 40 per cent.
Yuken and its associates worldwide manufacture oil hydraulic equipment. While YKC is based in Japan, the group's activities are flung across China, Hong Kong, UK, Taiwan and India, where it is based in Bangalore.
Antony Cruz, company secretary, said, "I am not aware of any such thing happening." However, according to Cruz, there had been discussions along these lines last year between the parent and the Indian management, but no decision was taken.
The market has, however, been rife with news that an imminent increase in holding by the parent would take place.
Cruz said in September this year the foreign collaborators would be in India to attend the company's annual general meeting and there are chances of the issue coming up once again.
Yuken India was set up in 1976 in technical and financial collaboration with Yuken Kogyo to manufacture oil hydraulic equipment. The 60 per cent non-Japanese holding is distributed among institutions, Indian promoters and the public.
YIL is a listed company with 40 per cent of the shares held by YKC and the rest by institutions, Indian promoters and the public.
Cruz said that Yuken India is on an expansion drive and is working towards improving its productivity by 50 per cent.
He said, "Currently our productivity - measured in terms of sales turnover - stands at Rs 32 crore we are expecting that this fiscal we are able to at least clock Rs 40-45 crore." For 2000-01, the company had a turnover of Rs 31.84 crore.
The company is also laying major thrust to reduce inventory and receivables by 50 per cent from Rs 20 crore to Rs 10 crore. The company has also introduced lots of Japanese techniques which involves lean manufacturing and increased production. Yuken India has a wide customer base including clients such as Honda Motors, the Kirloskar Group and HMT.
The scrip price has consistently going up. From Rs 6.10 on June 4, the share has gone up by more than 173 per cent to Rs 16.70 as on July 9. Since then the price has been hovering around Rs 15.
In the past 15 years, YIL has achieved the fastest growth rate in the oil hydraulics industry in spite being the last entrant. Today, most manufacturers of original equipment have accepted YIL as a preferred source of supply.
Seeing the need for high torque, low-speed hydraulic motors, YIL started, in 1989, Sai India Ltd (SIL), a joint venture with SAI Spa of Italy. Sai Spa are the largest manufacturers of radial piston motors in the World. SIL has grown to become the preferred supplier of hydraulic motors to all major OEM's in India.
The manufacturing facilities are located in Whitefield, about 20 kms from Bangalore.
To ensure supply of high quality castings, YIL took over a running foundry in Whitefield in 1986 and turned it around. From a modest turnover of Rs 24 lakh in 1978,YIL grew to nearly Rs 30 crore by 1997.
