Honda Siel takes over Usha International for Rs 180 crore; ends joint venture with Indian firm
Last Updated at
- 04:19 pm, August 11, 2012
The process of changing the company name will be completed in the next few months.
After working together for sixteen years to run Honda Siel Cars India Ltd, Honda and Usha International have ended their joint venture in India, with the latter reportedly selling its 3.16 per cent stake to the Japanese carmaker for Rs 180 crore.
Now that Honda India will operate on its own and will be the only owner of the company, the carmaker has said that process of changing the company name and other formalities will be completed in the next few months.
Siddharth Shriram, owner of Usha International will step down from his post as the chairman and director of Honda Siel. "Usha feels that it was inevitable that someday the parting would come, because automobiles are not really Usha's direct business. Honda Motor Co has purchased all of the shares that Usha held in Honda Siel Cars India Ltd. The proceeds from the stake sale would be applied to the normal development of Usha's business” the company said.
The Indo-Japanese joint venture took off back in 1985 when Honda Siel Power Products (formerly known as Shriram Honda Power Equipment Ltd) was started. The domestic firm then partnered with Honda when the carmaker was looking to make its foray into the Indian market. The company has been operating in India since then, achieving some significant milestones in the process.
First Published on 04:19 pm, August 11, 2012
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