Sumitomo Corporation has agreed to acquire a 49% stake in Indian automotive specialty steel maker Mukand Alloy Steels and thus increase its exposure to the country's growing automotive industry.
Sumitomo said it would also participate in the business at operational level, including the supply of semi-finished steel products for finishing by its Indian joint venture partner.
Mukand, headquartered in Thane in the Indian state of Maharashtra, has two plants that make specialty and stainless steel products, including transmission gears, steering systems, suspension parts and fasteners.
Sumitomo hopes its partnership with Mukand will help strengthen its current position in the supply of steel products to India's automotive industry. It is looking to become a leading supplier of a full range of steel materials and parts to India's auto manufacturing sector and its supply chain.
The two companies had earlier established a joint venture in 2012, called Mukand Sumi Metal Processing, dedicated to the manufacture and sale of secondary processed specialty steel and stainless steel products in India.