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Matsushita (Panasonic) to form JV to set up manufacturing base
New Delhi, June 30: Matsushita (Panasonic) battery of Japan today said it would float a joint venture with its sole distributor, base corporation, to set up an automotive battery manufacturing base in India with an investment of Rs 100 crore.
New Delhi, June 30: Matsushita (Panasonic) battery of Japan today said it would float a joint venture with its sole distributor, Base Corporation, to set up an automotive battery
manufacturing base in India with an investment of Rs 100 crore.
"We are still working out the modalities like equity structure and the quantum of the Rs 100 crore investment to be made by the two companies," Matsushita (Panasonic) battery managing director Mitsuru Kurukowa told a news conference here launching maintenance free automotive batteries.
The proposed facility would be set up at Halol, near Bangalore with a production capacity of 1.2 million units a year. The JV would be formed "very soon", Base Corporation managing director Girish Arora said.
"We will apply to the foreign investment promotion board immediately after the formation of the JV for Japanese investment. The factory will start production by early next year," he said.
At present, Matsushita sells imported batteries through Base Corporation which attract a whopping 51 per cent import duty.
"The moment the Bangalore facility is ready, we will tap the burgeoning demand by major car makes like Maruti and others as Original Equipment Maker (OEM) which we cannot do now because of high import duty," he said.
The company will also import automotive batteries from its manufacturing base in Sri Lanka.
Import from Sri Lanka would also bring down prices of Panasonic batteries which was already cheaper by 10 per cent than its competitors, Arora said.
Bureau Report
"We are still working out the modalities like equity structure and the quantum of the Rs 100 crore investment to be made by the two companies," Matsushita (Panasonic) battery managing director Mitsuru Kurukowa told a news conference here launching maintenance free automotive batteries.
The proposed facility would be set up at Halol, near Bangalore with a production capacity of 1.2 million units a year. The JV would be formed "very soon", Base Corporation managing director Girish Arora said.
"We will apply to the foreign investment promotion board immediately after the formation of the JV for Japanese investment. The factory will start production by early next year," he said.
At present, Matsushita sells imported batteries through Base Corporation which attract a whopping 51 per cent import duty.
"The moment the Bangalore facility is ready, we will tap the burgeoning demand by major car makes like Maruti and others as Original Equipment Maker (OEM) which we cannot do now because of high import duty," he said.
The company will also import automotive batteries from its manufacturing base in Sri Lanka.
Import from Sri Lanka would also bring down prices of Panasonic batteries which was already cheaper by 10 per cent than its competitors, Arora said.
Bureau Report