NSK Ltd. (NSK; Headquarter: Tokyo, Japan; President and CEO: Seiichi Asaka) and ABC Bearings Limited (ABC; Headquarter: Mumbai, India; Managing Director: Pradip Patel) are pleased to announce that they have reached a basic agreement to form a Joint Venture Company (the JV Company) to manufacture bearings for the automotive industry, targeting mainly Japanese and other transplant customers.
Since 1998, ABC and NSK have maintained a good relationship, with NSK providing technical support in the production of bearings. Against the background of rapid economic growth in India, both companies decided to form the JV Company to produce bearings in order to meet the demands of the automotive industry. For NSK, this joint venture is an opportunity for increasing sales to Japanese and foreign automotive manufacturers in India. For ABC, this provides new opportunities to increase sales to their existing customers for those ranges of bearings which are not manufactured by them.
|Company Name||NSK-ABC Bearings Ltd.|
|Capital||500 million Rupees (1.3 billion Yen)|
|Ratio of Capital Contribution||NSK: 75%
|Location||SIPCOT Industrial Park,
Kancheepuram District, Tamil Nadu, India
(located in a suburb of Chennai)
|Land Area||80,000 square meters|
|Building Area||7,000 square meters|
|Starting Production||January 2008|
|Business Plan||Production of bearings (HUB unit bearings, bearings for transmission, bearings for magnetic clutch, etc.)|
|Investment||- 500 million Rupees (1.3 billion Yen) for the initial stage
- 800 million Rupees (2.0 billion Yen) by the year 2010.
NSK inaugurated its business in 1916 and produced the first ball bearings made in Japan. Since then, NSK has developed a full range of bearings, which has been sold throughout the world, and has contributed greatly to the development of industries and the advancement of technology. Today, NSK is the No.1 manufacturer of bearings in Japan, and the No.3 manufacturer all over the world.
NSK has used its expertise in precision machining technology, refined through years of bearing manufacturing to diversify into automotive products, and precision machinery and parts. Since the 1960's, NSK has been aggressively developing its overseas markets, presently having 58 overseas production bases in 13 countries.
ABC is a solid mid-sized Indian Public Limited Company, founded in 1961, which engages in production and sales of tapered and cylindrical roller bearings, for supplying mainly to Indian commercial vehicles, tractor and multi utility vehicle industries.
ABC is ISO/TS 16949-2002 approved and is one of the important bearing companies in this sector. It is the largest tapered roller bearing manufacturer in India. ABC is a key player in the industry and holds a very large market share with its top customers.
Contact: NSK Ltd. Public Relations Department, (Phone: +81-3-3779-7050)
ABC Bearings Ltd., (Phone: +91-22-24964500)