Igarashi-Bosch venture to start operations soon

Chennai: Igarashi Motors India expects its joint venture with Robert Bosch GmbH of Germany to begin commercial operations shortly.

The joint venture company Bosch Electrical Drives India Pvt Ltd in which Igarashi Motors holds 49 per cent and Bosch 51 per cent equity will develop, manufacture and sell DC motors and systems for wiper, HVAC (heating, ventilation and air-conditioning), engine cooling and window lift applications for the Indian automotive market.

According to Igarashi Motors’ 2007-08 annual report, the company hopes to supply sub-assemblies to the joint venture, which would result in increase in sales. Igarashi Motors makes a range of DC motors and motor sub-assemblies that are used in various automotive parts, at its plant in the Madras Export Processing Zone.

In his remarks, Mr K.K. Nohria, Chairman, Igarashi Motors India Ltd, says the joint venture will help Igarashi Motors source raw materials at more competitive prices and also increase the company’s sub-assemblies business. In view of this joint venture, Igarashi Motors had to re-organise its component and sub-assembly business to avoid conflict of interest with competitors to Robert Bosch.

According to the annual report, the company sold sub-assembly manufacturing lines of value Rs 12.05 crore and components manufacturing lines along with other assets of value Rs 21.31 crore and earned a profit on sale of fixed assets of Rs 4.10 crore. During 2007-08, Igarashi Motors divested complete investments in Agile Electric Technologies Pvt Ltd (formerly Igarashi Technologies Pvt Ltd), Igarashi Electric India Pvt Ltd and 26 per cent of investment in Agile Electric Sub Assembly Pvt Ltd (formerly Igarashi Brush Cards Pvt Ltd) and earned profit on sale of investments of Rs 28.69 crore.