Auto components maker UNO Minda and Japan's Panasonic Corporation have entered into an agreement to form a joint venture to manufacture and sell lead acid storage batteries in the India.
The share capital of the JV, in which UNO Minda will hold 40 per cent stake and the majority 60 per cent with the Japanese partner will have a share capital of Rs 160 crore.
"The new joint venture company will address the growing market of lead acid storage batteries for two and four wheeler vehicles and UPS in India with leveraging knowhow and technology owned by Panasonic as well as customer bases of both parties," the company said in a statement.
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Panasonic is operating production bases in Japan, Thailand and China. By establishing the said company in India, it aims at expanding overseas operations of its business.
UNO Minda Chairman and Managing Director Nirmal K Minda said the battery market in India is experiencing rising demand from various sectors, thereby providing immense opportunities to manufacturers to grow and operate in the market lucratively.
"Having strong footprint in India and with technical support of Panasonic, a leading name in the industry since 1937, we believe UNO Minda will be able to serve customers in multifarious ways," he added.
Panasonic Senior Managing Director Yoshio Ito said: "We believe our technology over the years will contribute to development of the industry of lead acid storage batteries in India through the joint venture company with UNO Minda."
The two partners are aiming to establish the joint venture company in November, 2014 after obtaining regulatory approvals, the statement said.
