Fiem Industries Enters JV With Asian Industry, Japan
Fiem Industries Limited have signed a "Joint Venture Agreement" with Aisan Industry Co., Ltd., Japan for the manufacture of Fuel Injection system and IC connector for two-wheelers and three-wheelers for the Indian market.
India is now the world biggest two-wheeler market and still growing at a fast pace. Fuel Injection System will become mandatory for two-wheelers and three-wheelers w.e.f. April 2020 under Bharat Stage VI (BS VI) regime. This is an advanced Emission Control System Product, which will have a huge market in India under BS VI norms and will replace the carburettor.
Asian Group, established in 1938 in Japan is a global player in products like Electronic Fuel Injection Products, Emission Control System Products, Engine Cooling System Products, Intake & Exhaust System Products, Engine Valves and LPG & CNG System Products etc. Asian Group has a global presence through its subsidiaries and affiliates and their major customers are Toyota, Hyundai, Renault Nissan, Yamaha, Suzuki and so on.
Following are the other information about the joint venture:
1. The initial share capital of Joint Venture Company is proposed INR 1 Billion, wherein shareholding of Fiem will be 26% and of Asian will be at least 69%.
2. Fiem will have one nominee Director on the Board of the Joint Venture Company.
3. Fiem and Asian are independent Companies to each other. Promoters I Promoter Group of Fiem are not connected to Asian in any manner. Further, No potential conflicts of interest arise in the Agreement or Joint Venture.
4. The factory of the Joint Venture will be set-up in Tapukara 1 Salarpur Industrial Area, Rajasthan in ELCINA Electronic Manufacturing Cluster.