Hero Motors Ltd (HML) on Monday announced its tie-up with Kiriu Corporation, an affiliate of Sumitomo Corporation of Japan, to launch their joint venture company in India named Munjal Kiriu Industries Private Ltd (MKI). The company will manufacture various automotive ferrous casting parts for leading automobile manufacturers in the investment country. The companies plan for expansion of existing capacity at MKI with an estimated investment of about Rs 160 crore in the next two years.

Mr Pankaj Munjal, Managing Director of Hero Motors Ltd, said, “MKI has been operating well and growing rapidly in the Indian casting industry through excellent cooperation and ties between two partners in India and Japan since its establishment in 2007.”

To lead MKI towards more sustainable growth and financial stability, the two partners have determined to make MKI a consolidated affiliate of Kiriu by changing the percentage of shareholding from the previous 33.4 per cent to 51 per cent. Hero shall stay at the management with 49 per cent of shares of MKI's operations.

New casting line

Mr Munjal has been elevated to Chairman of MKI and the company has also appointed a new Managing Director of MKI.

Mr Junichi Hashiguchi, President & Representative Director of Kiriu Corporation, added, “New management team will be functional enough to gear up improving overall levels of quality, cost competitiveness and delivery indicators with Kiriu's initiative and Hero's support.”

MKI plans to install another new casting line in the current Manesar plant by the latter half of 2012, to ramp up production, in response to the rapidly increasing demand of the Indian automotive industry.

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