One of the world's largest Tier-One suppliers of automotive systems is expanding its footprint in India with a new joint venture, which will design—not manufacture—car air conditioning systems. The initial investment for the design center will be $3 million.
Denso (Kariya, Japan) has established the JV with Subros Ltd., India's leading car air conditioning system manufacturer. Denso has been manufacturing and selling automotive components in India since 1984 and has six plants there, including two subsidiaries that manufacture and sell car air conditioning systems; however, the new joint venture will be Denso's first product design company. It will be based in Noida, near New Delhi, and will employ about 40.
The new company, tentatively being called Denso Subros Thermal Engineering Center India Ltd., will be established this September, with Denso owning a 74% stake of it. Subros was founded in 1985 and is 40% owned by the Suri family of India, with Denso and Suzuki each owning 13%.