February 18, 2008 -- The Chennai-based Igarashi Motors India (BSE: 517380) said it had signed an agreement with Germany's Robert Bosch GmbH to form a joint venture to develop, manufacture and sell automotive components.

The JV would start operations in the second half of 2008 to manufacture, develop and sell DC Motors and systems for wipers, HVAC, engine cooling and window lift applications for the Indian automotive market.

Headquartered in Chennai, Bosch would have a 51 per cent stake and the remainder in the JV would be owned by Igarashi Motors India, the two companies said in a joint statement filed with the stock exchanges here.

The JV also plans to employ about 100 associates by the end of 2008.

"Technologically, Igarashi and Bosch are a perfect fit, with each one's strength complementing the other. Together, we want to exploit the market potential of DC motors and other automotive components in the Indian market," Igarashi Motors India Chairman K K Nohria said.

Igarashi Motors India (formerly known as CG Igarashi Ltd) is a joint venture between Crompton Greaves Ltd, Igarashi Electric Works Ltd, Japan and International Components Corporation, USA.

"With this joint venture, we are expanding our range of products manufactured locally in India. In this way, we offer our local customers the best possible support in the further motorisation of India," Bosch Ltd Managing Director and representative V K Viswanathan said.

Bosch employs some 18,000 associates in India.

The company had 11 manufacturing sites and four development centres in the country, the joint statement informed the BSE.

Shares in the company were trading at Rs 74, up 9.14 per cent on the BSE.

Source: Asia Pulse