India’s Elconconnectors Cables to produce wiring harnesses with Japan, Indonesian partners
NEW DELHI, NNA - India’s leading automotive component maker Elconconnectors Cables Pvt. Ltd. will set up a joint venture with two Indonesian companies, including a subsidiary of Japan’s Banshu Electric Equipment Co., to manufacture wiring harnesses in India.
The three companies, also including P.T. Banshu Electric Indonesia and P.T. Askara Internal, will invest 200 million rupees ($2.8 million) to build a wiring harness plant in the city of Greater Noida, northern India, under the joint project, Elconconnectors Cables said in a statement on Tuesday. They did not disclose the ratios of investment among the partners.
Banshu Electric, based in the western Japan city of Kakogawa, manufactures electrical components for vehicles and construction machinery. Askara specializes in the procurement of industrial products and services.
The joint venture will be named Elcon Banshu Wiring Systems Pvt. Ltd. (EBWS), and the 4,180 square meter plant will house an extensive research and development center, the statement said. It will manufacture products for finished motor vehicle makers in India.
Banshu Electric President and CEO Akihiko Yoneda said in the statement that the joint venture enables his company to “reach a wider market and cater to the demand of one of the fastest growing automotive markets.”
Data of the Society of Indian Automobile Manufacturers show that the world’s largest motorcycle market has seen strong growth in recent years, with new sales figures reaching 21 million units in the year to March 2019.
“We are gearing up for this future demand,” Yoneda added.
With its headquarters in Noida, Elconconnectors Cables has overseas bases in Germany, South Korea, and Singapore, dealing in wire harnesses for the automotive industry and other components including connectors.