Koyo Seeks Indian Partner For Bearings Venture

Koyo Seiko Co, the $ 2.5 billion Japanese engineering major, is keen to set up a joint venture unit to manufacture ball and tapered roller bearings in the country.

The joint venture will assemble components imported from Koyo's manufacturing plants in Japan. The venture will also include selective manufacturing of some of the items.

Bearings are essential components that provide stable operation to thousands of machines. They serve applications for machinery in diverse fields ranging from industrial machinery, automobiles, trains, aircraft, electrical applications, information networks to energy and space exploration.

The Japanese multinational is at present conducting a feasibility study for the project and is yet to decide on the size of the investment and the location of the plant.

 

We would like to enter the Indian market with a local partner who has a better understanding of the domestic market, instead of setting up a wholly-owned subsidiary, said Hiroshi Sano, manager (engineering), Koyo Singapore Bearing Pte.

The company's steering division already has a joint venture with Sona Steerings which supplies power steerings to Maruti-Suzuki.

Most of the components for the proposed bearing unit in the country will be routed through the company's warehouse in Singapore.

This will be Koyo's third bearings plant in Asia. The other two manufacturing units are located in Thailand and China.

Koyo Seiko Co has four divisions. The automotive components division makes handle-joints, one way clutches, four-way steering systems. The steering systems division manufactures manual steering gears, motor assisted power steering, and hydraulic power steering gears. The bearings division makes deep groove ball bearings, cylindrical, tapered and spherical roller bearings while the mechatronics division is involved in the manufacture of factory automation systems, drive shafts, heat technology, electronic component systems and environment analysis systems.