Caparo, Itochu Steel plan JV in India

Lord Swraj Paul promoted Caparo Engineering India has entered into a joint venture with Japan-based Marubeni Itochu Steel Inc to set up an automotive blank manufacturing unit near New Delhi at an initial investment of Rs 18 crore (Rs 180 million).

A formal agreement was signed between Caparo India chairman Angad Paul and Itoch Steel president Tsunekatsu Yonezawa in Tokyo and the joint venture was christened as Caparo Marubeni Itochu Steel Inc, a statement said.

The unit, to be set up in Gurgaon, would have a capacity to produce 6,000 tonnes Tailor Welded Blanks per annum, it said.

The Caparo Engineering India, a subsidiary of London-based Caparo Group, would hold a majority 70 per cent stake in the JV company, it said adding that the projected sales figures in the next three years would be approximately Rs 33 crore (Rs 330 million).

The facility would be operational by July next year, the statement said.