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Mando Corporation entered into an agreement with Anand last Wednesday for the merger of the two joint venture companies partnered by the two groups – Mando India Steering (MIS) and Mando India Limited (MIL), in a bid to target India’s automotive component market. The consolidated operation of the newly merged company will take effect on April 1 under the name of Mando Automotive India Limited.
The agreement was signed between Mr. Frank Chung, Executive Vice President of Mando Corporation, and Mr. Pravesh K Srivastava, President of Anand Group, in Delhi, India.
Under the agreement, Mando will acquire 71 percent of the new corporation’s stocks, taking over its management control.
Mando and Anand have been partners since 1997 with the equity share of 67 to 22, respectively. The first joint venture MIL was set up to manufacture brake and suspension systems.
Mando established MIS on its own in 2006 to manufacture electric power steering products and then transferred 26 percent of MIS’ shares to Anand via a rights offering last October.
The partnership will enhance its marketing towards local companies including Tata and Mahindra not to mention its existing customers of Hyundai Motor India, GM India and Nissan, Mando expects.
Last year, MIS and MIL recorded 240 billion won in sales, up 12 percent from a year earlier. The sales will double over the next five years, said Mando.
Mando recently received an order for 176 billion won-brake systems from Fabbrica Italiana Automobiles Torino (Fiat). The automotive component manufacturer gradually expanded its customers from PSA and Renault in 2009, BMW in 2010, Volkswagen in 2011 to Fiat in 2013.
Source: Yonhap News (Feb. 21, 2013)
** This is the translation of a Korean article.