The Bosch group has acquired an additional 40% stake in Kalyni Brakes, its joint venture with the Kalyani group. This takes Bosch’s equity to 80%.
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The company will be renamed Bosch Chassis Systems India. Bosch will pay Kalyani INR2.75 billion (£36.5 million; €53 million) for the stake.
The move is seen as beneficial to both companies. Bosch plans to use Kalyani Brakes as a global manufacturing base for modern braking systems while Kalyani – also behind leading supplier Bharat Forge – is planning to focus on core business areas.
The move is in line with Kalyani’s group flagship Bharat Forge (BFL) plans to be a world leader in forgings. BN Kalyani, the group’s head, has previously said he would divest all non-core activities. The group sold its stake in Kalyani Lemmerz, its wheel rims manufacturing joint venture with Hayes Lemmerz, recently. The group is also expected to divest its home electronics joint venture Kalyani Sharp India very soon.
Bosch is expected to start manufacturing advanced braking systems including ABS – expected to attract greater demand in Indian in future – at the plant. Kalyani Brakes currently manufactures conventional braking systems and components for passenger cars, tractors, three-wheelers and two-wheelers at its plants in Jalgaon, Chakan, and Manesar. The company had 2004 sales of €63 million.
Deepesh Rathore / Tilak Swarup
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