The equal joint venture will have an overall share capital of Rs. 70 million
Tube Investments of India Ltd., a part of the Murugappa Group, has inked an agreement with Tsubamex of Japan to set up a joint facility to design sheet metal stamping dies for the automotive industry and the white goods sector.
Tsubamex is a niche player in the Japanese sheet metal stamping die industry. The equal joint venture will have an overall share capital of Rs. 70 million, and will be incorporated as TI Tsubamex Ltd.
Under the agreement, engineers will undergo extensive theoretical and practical training at Tsubamex in Japan.
The training will cover die design and process engineering, and will prepare the design engineers to independently handle assignments at the joint venture in India.
“Competency building in dies design and process engineering will be the key differentiator and the formula for success of the new joint venture,” a release from the company said.
According to L. Ramkumar, Managing Director, TII, it would be a design venture to begin with. It would work with body part makers for the automobile industry in India. Tools and dies for body parts, according to Mr. Ramkumar, are currently imported. The objective of the joint venture with the Japanese company is to eventually progressively indigenise the manufacture of dies and tools. “It is, however, too early to make a guess on production facility,” he said.