Mahindra Intertrade entered in a Joint Venture with Mitsui and China Global will set up an automotive Steel processing centre in Pune.
Mahindra Intertrade, a part of the Mahindra group company has entered in a Joint Venture (JV) with Taiwan-based, China Steel Global Trading Corporation and Singapore-based Mitsui & Corporation (Asia Pacific). JV is to set up an automotive steel service centre in Chakan, near Pune, India.
Mahindra Intertrade will own about 51% of shares in the partnership. The other two companies will hold 24.5% shares each. The company processes steel for power, home appliances and automotive sectors.
The companies will invest about USD 24 million for the unit spread in around 10 acres of land. The initial capacity of the plant is expected to be around 0.13 MnT which will be increased later on. According to the company officials, the plant will begin operations in Q4 FY15.
According to Harsh Kumar, MD of Mahindra Intertrade, this unit will offer a full range of services from sourcing to customized just-in-time delivery solutions to its customers. This will be Mahindra’s seventh steel processing facility in India and third in Pune.
China Steel Global Trading Corporation Vice President- Planning and Administration Division Julian Shir said, “China Steel Corporation Group has lately been developing high-end steel products such as automotive steel. India is one of the key markets for us. By establishing this steel processing centre we wish to extend our services to India and build a beachhead in the automotive market here.”.
The steel service centre will offer an entire range of services to its automotive customers in Pune. The services will include sourcing, warehousing,yield optimization, forex risk management and timely delivery. The unit will also provide products such as blanks, trapezoids and profiles. They will import the raw material from China Steel Global including some stocks from the local market as well.