Nissin Brakes spends $58 mn in India plant

Written by Reuters | Mumbai, August 21: | Updated: Aug 21 2007, 21:28pm hrs
The Indian joint venture of Japan's Nissin Kogyo Co Ltd is investing about 2.4 billion rupees ($58 million) in a manufacturing facility in the western state of Rajasthan to tap the fast-growing auto market.

Nissin Brakes India Pvt Ltd said on Tuesday the plant would begin commercial operations by the last quarter of 2008. It will have an annual capacity to make 200,000 disc brakes for four-wheelers and 800,000 units for two-wheelers.

The plant will initially supply Honda Motor Co. units in India, including Honda's second car plant in Rajasthan, a spokesman said. It will also export parts after 2009, he said.

Nissin Brakes India is an equal joint venture of parts maker Nissin Kogyo and Nissin R&D Asia Co Ltd.

Annual sales of passenger vehicles in India are forecast to nearly double to 2 million units by 2010. Motorbike sales hit more than 6.5 million units in the year to March 2007. ($1=41.2 rupees)