Bosch, Brembo Enter JV in India
October 18, 2005
Filed under Uncategorized
Kalyani Brakes Limited, an Indian firm 80% owned by Germany-based Robert Bosch GmbH, has entered into a joint venture with Italy's Brembo SpA to manufacture motorcycle brakes in India.
The 50/50 joint venture company, KBX Motorbike Products Private Ltd., will be based in Pune and work exclusively on the engineering, production and sales of brakes for two-wheelers.
The two companies expect an initial investment of $15.5 million. Kalyani Brakes will integrate its existing two-wheeler brake production into the joint venture. Brembo will contribute licenses and technology.
Approximately six million two-wheelers were sold in India during the past twelve months. Kalyani Brakes generated sales of $75.3 million in the fiscal year 2004-05.
KBX products are intended for the Indian market, although the firms say the joint venture will explore export potential. Sales are expected to amount to Euro 20 million in the first year, then double within four years, according to Bosch.
The agreement was signed October 17. The deal is subject to final approval by antitrust authorities and the Foreign Investment Promotion Board of India.