KUALA LUMPUR: Multi-Code Electronics Industries Bhd is setting up a joint venture company with Indian national, Ishwar Singh of Haryana Industries, to manufacture and supply automotive parts for the Indian market.
The Haryana group, founded in 1985, is a leading OEM supplier to passenger and commercial vehicle manufacturers in India and has a turnover of approximately US$80mil (RM256mil) for the financial year 2012-2013.
The new business entity will be a private limited company with a paid-up capital of 100,000 rupees (RM5,350), in which Multi-Code Electronics holds 60% equities share at 60,000 rupees (RM3,200) with the rest taken up by Ishwar.
It will manufacture the same range of products currently being produced by Multi-code Electronics, including window regulator systems, switches, alarm systems and parking sensors.
According to Multi-code, it will provide the management team and technology for the venture, while its partner will assist in the procurement of supplies and securing customers for the business.
The joint venture would not have any effect on the company's shareholders, its earnings per share nor its net assets for the financial year ending July 31, 2013.
"The joint venture is in line with Multi-Code Electronics' strategy to broaden its earnings base and will facilitate its entry into the Indian market and tap into its JV party's knowledge and network in the Indian market," it said.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
