Magneti Marelli forms joint venture with Unitech Machines

New Delhi: Fiat Group company Magneti Marelli has announced that the Gurgaon-based Rs 700-crore company, Unitech Machines, will be its fifth joint venture partner in India.

The joint venture, which entails an amount of €12 million or Rs 75 crore, would have Magneti as the majority partner with 51 per cent stake and the remaining will be held by Unitech Machines.

The agreement, which includes, design, production and assembly of motor vehicles and electronic components such as instrument cluster, body electronics and telematic devices, is expected to be operational by the first quarter of 2009.

“Unitech Machines would invest Rs 40 crore to set up a facility in Manesar for the new venture. Through our partnership with Magneti, we are targeting business from companies like Tata Motors, Fiat, Volkswagen, Maruti and Mahindra,” said Mr Suman Punn, the company’s Chief Financial Officer.

Mr Eugenio Razelli, Chief Executive Officer, Magneti Marelli, said, “We have created five joint ventures in less than a year’s time in a crucial market like India, thus completing our localisation plans.” Magneti’s other partners in the country include Motherson Sumi, Endurance, Suzuki Motor Corporation and SKH for various components such as powertrain, exhaust system, shock absorbers.

Unitech’s automotive vertical clocked a turnover of Rs 225 crore last fiscal by supplying components such as headlights, taillights mainly to Hero Honda and in a small proportion to Maruti, Yamaha, General Motors and TVS.