The factory of the JV will be set up in Tapukara / Salarpur industrial area, Rajasthan in ELCINA Electronic Manufacturing cluster.
Shares of FIEM Industries rose 2.4 percent intraday Monday as the company entered into JV with Japanese firm Aisan Industry Co.
The company signed a joint venture agreement with Aisan Industry Co., Ltd., Japan for manufacture of fuel injection system and IC connector for two-wheelers and three-wheelers for Indian market.
Fuel injection system will become mandatory for two-wheelers and three-wheelers w.e.f. April, 2020 under Bharat Stage VI (BS VI) regime.
This is an advanced emission control system product, which will have huge market in India under BS VI norms and will replace carburetor.
The initial share capital of joint venture company is proposed Rs 1 billion, wherein shareholding of Fiem will be 26% and of Aisan will be at least 69%.
The factory of the JV will be set up in Tapukara / Salarpur industrial area, Rajasthan in ELCINA Electronic Manufacturing cluster.
At 14:09 hrs FIEM Industries was quoting at Rs 897.35, up Rs 19.05, or 2.17 percent on the BSE.
Posted by Rakesh Patil