Joint Venture Agreement on a Steel Processing Center Revised
|Agreement signing ceremony with Mahindra & Mahindra
An executive of Mahindra & Mahindra Limited, one of India's major conglomerates active in the steel business and automobile production, recently visited Japan and signed a new joint venture agreement on a steel processing center in which Metal One Corporation will hold a capital stake.
The Indian conglomerate, operating an extensive array of businesses, including steel, automotive, IT, and finance, is one of the most notable companies in the country. Its vice chairman and managing director, Mr. Anand G. Mahindra, received the Businessman of the Year 2007 award from the magazine Business India.
Mitsubishi Corporation and Nissho Iwai Corporation had already joined hands with Mahindra & Mahindra in 1951 and have since established their positions as pioneers in the exporting of Japanese-made steel to India. In 1993, the three companies set up a joint steel machining company by the name of Mahindra Steel Service Centre Ltd. (MSSCL), which has been engaged in the cutting, processing, etc., of steel sheets for automotive use and electrical sheets. The two Japanese partners' stake was taken over by Metal One (giving it a 39% share), and the joint venture now processes some 100,000 tonnes of steel a year. With a view to adapting this arrangement to the changing business environment, which is a reflection of India's amazing economic development in recent years, it was decided to revise the joint venture agreement for the first time in 15 years. A ceremony was held on April 7 at Metal One's headquarters for the signing of the new agreement. At the ceremony, the agreement was signed by Group Management Board member Mr. R. Murti, representing the Mahindra Group, and managing executive officer Terumitsu Kiba, representing Metal One, and the start of the renewed tie was celebrated.
(Steel Products for Overseas Electrical Industries Department)