Subros enters into JV with DENSO Corp

Subros Limited, India’s leading manufacturer for automobile air conditioners, has entered into a joint venture (JV) with its two-and-a-half-decade-old partner, DENSO Corporation of Japan, to set up a product development centre in India.

The DENSO Subros Thermal Engineering Center India, being set up in Noida, will be operational by September. An investment of Rs 13.6 crore will be phased in over the next two years.

“Subros will have 26 per cent stake in the joint venture company that will further enhance design and development capabilities of Subros to provide complete technical solutions for automobiles in India,” Ramesh Suri, chairman, Subros Limited said, adding the initial investment in the project would be Rs 6.8 crore.

Over and above this, Subros is investing Rs 30 crore in 2010-11 across its five plants to enhance capacity for automobile air conditioners in the country.

“We plan to invest Rs 30 crore in the current financial year to increase our production capacity from one million units a year now to 1.25 million units by the end of 2010-11 to cater to the growing demand from our clients like Maruti Suzuki India, Tata Motors and Mahindra & Mahindra,” Suri added.

Maruti alone had last year produced over a million units.