Maruti to set up JV with Bellsonica

Maruti Udyog Ltd has informed BSE that Bellsonica Corporation on July 12, 2006 announced that it will set up operations in India through a joint venture Company with the Company. While the Company will hold a 30 per cent stake in the venture, Bellsonica will hold 70 per cent stake. The total paid-up capital of the joint venture will be Rs 120 million. The name of the joint venture will be Bellsonica Auto Component India Pvt Ltd (BACI). The India operation, being set up by Bellsonica on the recommendation of Suzuki Motor Corporation of Japan, is expected to go on stream in November 2007. The Company's proposal has been approved by Foreign Investment Promotion Board. The joint venture Company, BACI, will manufacture body metal components, including high tensile strength steel, for the Company's vehicles. Its plant will be located in the same campus as the Company's new car plant in Manesar, Haryana. Bellsonica has been providing technical support since 1995 to Jay Bharat Maruti Ltd (JBML), a leading auto component supplier in which, too, the Company holds a minority stake. After the formation of BACI, the relationship between Bellsonica and JBML will continue. Bellsonica's support to JBML, in terms of skill upgrade in areas like new processing technology, will be maintained.

Maruti Udyog has resistance at Rs 810-820

"Tata Motors and Maruti both were looking good but they are both now hitting major resistance zones and they could slide a bit.Maruti Udyog has major resistance zone at Rs 810-820. Buy it above Rs 820 or again on the fall where back to around Rs 760-740 level."

Source BSE