Denso Corp to invest Rs 410 crore in India by 2004-05

Okabe said while the company will focus on expanding in the auto ancillary and components sector, it is also looking at entering the telematics sector with electronic alert systems and control panels. However, Okabe did not give out any further details and merely said, “it is an interesting area and we may go for it”.

Charting out Denso Haryana Pvt Ltd’s (DNHA) future plans, he said it would increase its present investment in Gurgaon plant to Rs 338.1 crore by the end of 2001, and investments would rise to Rs 410 crore by 2004-05 which would mainly be for installing additional machines and tools.

Projecting a sale of Rs 263 crore during the current fiscal, Okabe said sales at Denso Haryana Pvt Ltd, a 100 per cent subsidiary of Denso Corporation would go up to Rs 440 crore by 2004-05.

While the plant in Haryana is for manufacturing engine management components like Electronic Control Unit (ECU), fuel pump, injector and ISCV, Maruti Udyog Ltd (MUL) is presently Denso’s sole customer. However, the company hopes to add other Japanese and US automobile manufacturers to its customer base in India. Globally, it supplies its range of auto systems and components to auto giants like Toyota Motor Corporation, Mitsubishi Motors, Daimler Chrysler, General Motors, Ford Motor Co., Honda Motor Co., Suzuki etc.

Denso’s Gurgaon plant would be the first in India to manufacture gasoline engine management systems, which would help Indian automobile companies meet statutory emission norms.

On Denso’s investment plans for its other four joint ventures in India, Okabe refused to elaborate further and merely said “we will have to stengthen our position in the Indian market. Yes, more investments are possible.”

Denso Corporation has 47.9 per cent stake in Denso India Ltd with MUL for manufacture of electrical automobile parts, 13 per cent stake in Subros Ltd for manufacture of air conditioners and 12.5 per cent in Premier Instruments and Controls Ltd (PRICOL) for manufacture of instrument cluster.

It also has 89 per cent stake in its joint venture with Kirloskar Industries for manufacture of radiator and air conditioners.

Earlier inaugurating the plant Haryana Chief Minister Om Prakash Chautala said the state government would offer a number of incentives and facilities to foreign investors setting up base in Haryana.