Mark Exhaust to ink JV with Japan’s Hirotec in mid-March

Gurgaon-based Mark Exhaust Systems (MESL), a joint venture between businessman Rattan Kapur and  associates and Maruti Suzuki India (MSIL holds a 43 percent stake), is revving up its business growth plan in India.

A key strategy is to strengthen its design, testing and validation capability in India and to that end it is in the process of sewing up a joint venture with Japanese design and technology company Hirotec Corp.

Hirotec’s managing director is visiting India on March 17 and the JV is expected to be inked at that time. This partnership will facilitate the setting up of a manufacturing company to produce exhaust systems in Gujarat with the majority stake to be held by Hirotec. “I expect about 55 percent stake to be held by Hirotec and 45 percent by Mark Exhaust,” Rattan Kapur, CMD, Mark Exhaust Systems, told Autocar Professional in an exclusive interaction.

As part of another MoU under the JV, Mark Exhaust will be provided technology for design, development and testing in India by Hirotec. The JV plant, which will mainly cater to Maruti Suzuki, will come up close to Mehsana in Gujarat where the carmaker’s factories are under construction. The plant will go on stream by 2017 to coincide with MSIL’s facility going on stream there.

“Hirotec is providing us the technology, so that for future car models the design and development will take place in India under Hirotec’s supervision,” says Kapur.

At present about 5 engineers from Mark Exhaust are undergoing training at Hirotec in Japan on design and development expertise that will later happen in India.  This will be hugely beneficial to customers; for instance, the $ 2-3 million cost for design and testing will fall to $ 1 million for clients.

Mark Exhaust has been stepping on the gas as it strengthens its product portfolio for its biggest customer. Last year, the supplier acquired a shock absorber company Beijing West Industries (BWI) of China and is tying up a second acquisition in Wales, UK, of a company dealing in aluminium components. 

Also read: Interview with CMD of Mark Exhaust Systems, Rattan Kapur