Maruti Udyog to form JV with Japan's Bellsonica

New Delhi, July 12: Leading car maker Maruti Udyog Ltd today said it will form a joint venture with Japan's Bellsonica Corporation to manufacture body metal components for its vehicles.

Maruti will hold a 30 per cent stake in the JV while the remaining stake will be owned by Bellsonica Corporation.

The new company-- Bellsonica Auto Component India Pvt Ltd (BACI)-- will have a total paid-up capital of Rs 12 crore, a company statement said here.

The India operation, being set up by Bellsonica on the recommendation of Japan's Suzuki Motor Corporation, is expected to go on stream in November 2007.

The company's proposal has been approved by Foreign Investment Promotion Board (FIPB).

The manufactuing plant will be located in the same campus as the company's new car plant in Manesar, Haryana.

In addition, Bellsonica has been providing technical support since 1995 to Jay Bharat Maruti Ltd (JBML), an auto component supplier in which, too, the company holds a minority stake.

After the formation of BACI, the relationship between Bellsonica and JBML will continue. Bellsonica's support to JBML, in terms of skill upgrade in areas like new processing technology, will be maintained, the statement added.

UNI