RIKEN CORPORATION (thereafter “RIKEN”) today announced that it has entered into the Joint Venture Agreement with Amtek India Limited (thereafter “AMTEK”) to establish a new company in Rajasthan, India to manufacture and sell automobile parts.
1. Background and Objectives
The Indian automotive industry is expected to continuously grow supported by the increased domestic demand and growing exports to the markets in the world.
Major automakers are making large investments to increase their vehicle production capacities in India.
RIKEN establishes the new company with AMTEK that is a leading casting company in India because RIKEN aims at expanding the sales of the casting components for automobiles, from the camshaft on down, in India automobiles market to be expected to further expand.
RIKEN has been expanding our casting components business for automobiles worldwide, such as in Japan, China and Indonesia. RIKEN will introduce our latest casting technology into the new company and expand the casting business of RIKEN Group worldwide much more with the new company.
2. Overview of the New Company
Company Name: AMTEK RIKEN CASTING PRIVATE LIMITED
Location: Bhiwadi, Rajasthan, India
Company: Representative Masafumi Kadokawa, CEO
Establishment: Date September 2014 (planned)
Description of Business: Manufacture and sales of camshaft and casting
components for automobiles
Capital: 250 million Rs (planned)
Settlement Term: March
Shareholders: RIKEN 50%, AMTEK INDIA LIMITED 50%
Start of Operation: December 2015 (planned)
Number of Employee: 90 (planned in 2017)
3. Overview of AMTEK INDIA LIMITED
(1) Company Name: AMTEK INDIA LIMITED
(2) Head Office: 3, Local Shopping Centre Greater Kailash-I, New Delhi / India
(3) Establishment: 1983
(4) Company Representative: Gautam Malhotra
(5) Description of Business: Manufacturing and selling casting parts for automobiles
(6) Capital: 553 million Rs
*Amtek India Limited is a subsidiary company of AMTEK AUTO LIMITED, and the Sales of AMTEK AUTO LIMITED in 2013 is 75 billion Rs.
4. Impact on RIKEN’s consolidated performance
The establishment of the new company will not have a material impact on RIKEN consolidated performance for the time being.