Bosch Subsidiary Partners with Brembo in India
Kalyani Brakes Ltd, Bosch’s Indian subsidiary has set up a joint venture with Italian brake company Brembo. The two businesses are set to establish a 50:50 joint-venture company for the application engineering, production and sales of motorcycle brakes following an agreement signed on 17 October 2005.
The headquarters of the joint-venture company, KBX Motorbike Products Private Ltd, will be in Pune, India where Kalyani Brakes is currently based. Kalyani Brakes will integrate the existing motorcycle brake production into the joint venture. Brembo will contribute licences and technology and will have the industrial leadership, according to an official statement.
The total investment of the two partners amounts to 13 million euros. The turnover for the first twelve months is forecasted at around 20 million euros and is expected to double over the next four years. Products are initially intended for the Indian market. Company representatives say they will explore export potential in the near future. The deal is subject to the final approval of the relevant Antitrust Authorities and Foreign Investment Promotion Board of India.
The Bosch Group recently increased its stake in Kalyani Brakes Ltd to 80 per cent and took over the industrial leadership. According to the company, Kalyani Brakes is a leading Indian manufacturer of conventional brake systems and components with plants in Jalgaon, Pune, and Manesar. The company generated sales of 63 million euros in the fiscal year 2004-05.
The Indian market is growing at an extremely rapid rate, with some six million motorcycles sold over last 12 months. The Pune plant will represent a base for the commercial expansion of Brembo products in the Asian region. Brembo braking systems are the preferred choice of the majority of the top teams in every world and national motorcycle championship.