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Kalyani Brakes forms JV with Italian firm

The Bosch-subsidiary has formed a Rs 70 crore joint venture with Italian firm Brembo for application engineering, production and sale of two-wheeler brakes

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MUMBAI: Bosch-subsidiary Kalyani Brakes on Tuesday said the company has formed a 13 million euro (Rs 70 crore) joint venture with Italian firm Brembo for application engineering, production and sale of two-wheeler brakes.

The two companies signed the agreement for the 50:50 joint venture - KBX Motorbike Products Pvt Ltd - to be headquartered at Pune.

The agreement will see Kalyani Brakes integrate its existing two-wheeler brake production into the joint venture. On the other hand, Brembo will contribute licences and technology and will have the industrial leadership.

For the first 12 months, Bosch has forecast the turnover for the new company at around 20 million euros (about Rs 108 crore) which it said was expected to double over the subsequent four years.

“Products are initially intended for the Indian market and the JV will explore export potential in the near future,’’ the company said in a statement here. It said the deal was subject to final approval of the relevant anti-trust authorities and Foreign Investment Promotion Board in India.

Bosch had recently increased its stake in Kalyani Brakes from 40% to 80%. Kalyani Brakes manufactures conventional brake systems and components and has plants at Jalgaon, Pune, and Manesar. The company generated sales of 63 million euros (about Rs 330 crore) in the fiscal year 2004-05 and has about 1,800 associates.

Brembo is the recognised leader in the design and manufacturing of high performance braking systems and components for a wide-range of vehicles. It has been licensing some design for motorcycle braking systems, without brand, to Kalyani Brakes since 1999.

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