Maruti + Magneti Marelli in Partnership

The manufacturing facilities of this joint venture company will be located in Manesar, in the industrial district of Gurgaon, India.

The initial investment of this project is 15 million Euros (about Rs 75 crore) and it will be funded through a mix of equity and debt. As per the agreement, Magneti Marelli will contribute 51% of the share capital of the new company, Suzuki Motor Corporation will contribute 30% and Maruti Suzuki 19%.

The production will commence in end 2008. Initially, the elctronic control unit (ECU) produced at Manesar will be used for Maruti Suzuki diesel cars and later on, it will also cater to other car manufacturers.

Meanwhile, as per recent reports, Maruti Suzuki’s proposal to set JV with Japan based Futaba Industrial Co, for manufacture and sale of exhaust system components for automobiles has been approved with foreign equity of up to 51% amounting to Rs 45.9 crore, company said.