New Delhi, India -Â Continental AG's Automotive Systems Division, has signed a Joint Venture Agreement with RICO Auto Industries Ltd, India to build a hydraulic brake systems plant in India. The joint venture will be a 50/50 partnership between the two companies, but Continental Automotive Systems will have the management lead.
The plant will produce hydraulic brake products and services consisting of calipers for front and rear axles, drum brakes, master cylinders, brake boosters and load sensing proportioning valves for vehicles of all classes, and supplying to OEM customers in India. The planned annual production capacity is 1.0 million of brake actuation units and 2.0 million brake calipers, 1.5 million drum brakes and 0.5 million load sensing proportioning valves. Conti did not mention brake hose.
The project is expected to go forward in two phases. The first phase is expected to generate annual sales of â‚¬ 30 million (Rs 165 Crores). The plant will begin mass production of hydraulic brake systems in 4th quarter of 2008, with employment of around 450 staff in Gurgaon near New Delhi.
The second phase will lead to annual turnover of â‚¬ 65 millions (Rs. 357.5 Crores) and would be employing 625 persons.
RICO, a US$ 250 million group is a well known name in the Indian automotive industry. With one of the biggest ferrous & aluminum casting & machining facilities in the country, RICO is one of the major suppliers of machined components and assemblies to Indian & global OEM's.
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Press release from Continental