In a first-of-its-kind partnership in the small size component manufacturing segment in India, Chennai-based Integral Component Manufacturer (ICMPL), which makes high precision machined components for engines and transmissions, has entered into a joint venture with Nishiura Seiko of Japan to form a new company, Indo Nippon Precision Component.

Targeted at Japanese OEMs for both the domestic and export markets, the new company will start manufacturing transmission and engine parts from December this year. An investment of Rs 10 crore is planned for the first year and will be scaled up to Rs 25 crore in the next three years. The company says it has already secured orders from two commercial vehicle manufacturers for the domestic and export markets.

Speaking on the partnership, V S Karunakaran, managing director, ICMPL, said, “The partnership with Nishiura Seiki, a company globally known for high precision, quality and technological advancement in the automotive component segment, will strengthen our technical capability and help us cater to the domestic and international customers.”

He said the new company will employ 100 people in the first phase, which has an initial production target of 200,000 parts per month. This number will be scaled up to 500,000 parts with a workforce of 200 people in the next three years.

ICMPL, which currently manufactures high precision parts at its Irungattukotai plant, near Chennai, wants to leverage the JV with the expertise of Japanese technology in manufacturing critical components for engine, transmission, brakes and chassis parts using the lean manufacturing Japanese principle of Nishiura. The company currently supplies to Ford India, Hyundai Motor India and Renault in the domestic market and exports to customers like Harley-Davidson, USA, Caterpillar and Cummins.

Masatake Nishiura, president, Nishiura Seiki, said, “Chennai become a leader in the automobile manufacturing in India and also the largest exporter of automobiles and components that of global quality. This made us to come to Chennai, not just to cater to the market that demands Japanese technology in auto components but also to market outside India.”

Nishiura Seiki, which was set up in 1937, has a fully automated manufacturing facility in Iwate, Japan and supplies to Mitsubishi Motors, Daimler Trucks, Volvo Trucks and Caterpillar.