The proposed joint venture, Magneti Marelli Turbo Systems, will be in collaboration with the Delhi-based Pranav Vikas and will be located at Pranav Vikas' unit near Delhi, where new facilities will be created, area representative Vincenzo Romano said. Magneti Marelli will hold a controlling stake of 90 per cent in the company, while Agarwal of Pranav Vikas will hold the rest.

An application to the FIPB is expected to be made this week.The proposed venture will have production volumes of up to 300 units a day and will later manufacture ancillary equipment related to radiator fans, Romano said.

It may be recalled that Magneti Marelli has a wholly-owned subsidiary, Magneti Marelli Automotive Components (India), located at Chakan, engaged in the manufacture of alternators, starters and wipers for two- and four- wheelers.

Magneti Marelli, the Italianmajor with products in the power train of automotive engines, has an international presence in the original equipment market to the extent of 79 per cent. It is now targeting the huge aftermarket in Europe, which it has recently entered.

Magneti Marelli Automotive Components was set up as a joint venture in October 1997 and began operations in December. In May 1998, it increased its stake to 100 per cent, and this month has appointed dealers. Romano said it will achieve indegenisation levels of about 40 per cent by December 1998, within a year of starting opeerations. The thrust on indeginsation is essential since the customs duty is very high on these products.

The company is presently located at Chakan, in rented premises. While Fiat India Automobiles Ltd (FIAL) which is setting up a greenfield project at Ranjangaon, would like MMACIL to be located there, and has even demarcated area for it, Romano said the decision was not yet final. While it would be in the Pune region, he said they would prefer to belocated closer to Pune, with its availability of trained manpower.