New Delhi, Mar 5 (UNI) Yamaha Motor Co today said it will set up a joint venture with Mitsui&Co in the country to manufacture motorcycles.
Mitsui will acquire a 30 per cent stake in the joint venture called India Yamaha Motor Ltd, which will have a capital of Rs 5,600 crore. Yamaha will hold the balance 70 per cent stake in this new joint venture.
''Both the parties have reviewed the possibilities for Mitsui's participation in various areas of Yamaha Motor's business activities with the aim of strengthening its overseas business and cooperative ventures in other areas of business,'' the company said in a statement.
After the restructuring, the company said, in the first year of operations (nine months period starting April 2008) it expects sales worth Rs 1,000 crore.
Yamaha plans to replace its current loss-making Indian motorcycle business with the new joint venture. The existing venture was established last year to produce motorcycles and has about 2,000 employees.
Last year the Japanese bike major and Mitsui had agreed to review possibilities for the latter's participation in various areas of YMC's business activities and strength in overseas business and cooperative ventures in other areas of business.
UNI AK PDT DB2014