Joint Venture Of Suzuki And Bellsonica

Bellsonica Automobile Part Pvt Ltd., the Maruti-Suzuki joint-venture with Bellsonica Corp., is expected to minimize the contribution per car of Maruti’s current sheet metal suppliers.
The joint-venture was set up in July last yr and is location up a plant in Manesar, close to Maruti’s new production plant. Maruti-Suzuki retains 30% in the joint-venture with the relaxation held by Bellsonica – a single of Suzuki’s regular suppliers in Japan.

The greatest loser is anticipated to be Jay Bharat Maruti, Maruti’s regular medium-sized sheet metal elements provider. Together with Caparo Maruti, Mark Vehicle (now SKH Metals) and Rasandik Industries, JBML accounts for most of Maruti’s sheet metal requirements. JBML is a single of Maruti’s best 5 suppliers in conditions of value.

Bellsonica’s Indian venture is very likely to overlap the most with JBML’s share in Maruti’s sheet metal component specifications, supplying the exact same variety of components. Sources pointed out that JBML, which supplies around 90 sheet metal parts for the just introduced SX4 saloon, was offered a lot less than 20 parts by Maruti for the Model P, a modest car or truck less than advancement by Suzuki, slated for launch in October 2008, to be produced in Manesar and slated for export to the European market. Maruti is focusing on exports of 150,000 units per year of exports of the Model P, apart from large domestic intake, once it is launched. The Model P will also be badged as a Nissan and that will account for 50,000 units as nicely.

Ironically, Bellsonica has been one particular of JBML’s technology companies in the past. BML is not the only probable loser for the reason that of Bellsonica’s Indian venture Caparo Maruti, Mark Automobile and Rasandik Industries are all most likely to see their regular content for every automobile with Maruti go down in the close to foreseeable future.

In a further development, the 4 sheet metal suppliers had been amongst the top rated ten worst rated suppliers at a latest Maruti provider conference.

Not incredibly, the sheet metal suppliers have been operating at increasing the share of non-Maruti business in their complete revenue. JBML has set up a amount of businesses beneath the “Neel” umbrella which are liable for non-Maruti organizations. These include a joint-venture with Thai Summit. JBML is already giving to Tata Motors, Toyota, Ford, Ashok Leyland, Honda and quite a few two wheeler organizations as well as Tier 1 suppliers like Delphi.

Caparo Maruti is also aggressively increasing past Maruti. It is presently giving to Typical Motors and Eicher Motors and is seeking at growing to other OEMs as effectively.