Bosch's second Indian subsidiary (the first was MICO), Kalyani Brakes Ltd, and Brembo have signed a 50-50 joint-venture agreement for the manufacture and sale of braking systems for two-wheelers.

The new company, KBX Motorbike Products Pvt. Ltd will be based in Pune, India.

According to the agreement, Kalyani Brakes will contribute by integrating its existing two-wheeler brake production into the joint-venture while Brembo will contribute licences and technology and will have the industrial leadership. The estimated investment is €13m while turnover of €20m is expected in the first year and is estimated to double in the subsequent four years.

Production will begin with domestic supplies only as the Indian market is growing fast with 6m motorcycles sold last year.

The Bosch group has recently increased its control in Kalyani Brakes from 40% to 80% by buying out the Kalyani Group stake and the company's name is expected to be changed.

Kalyani Brakes is India's leading manufacturer of brake components and systems with facilities in Jalgaon, Pune and Manesar. In 2004-2005, its turnover was INR3.69billion (€67million) employing 1,800 people.

Since 1999 Brembo has granted Kalyani Brakes a licence to design braking systems without using the Brembo brand.

Deepesh Rathore