India's Hero Motors Ltd. has signed a memorandum of understanding with Kiriu, a subsidiary of Japan's Sumitomo Corp. (8053.T: Quote, NEWS , Research), for a joint venture and a technical collaboration to make auto parts.
Munjal Sumi Kiriu Ltd., as the joint venture company will be called, will make disc brakes and knuckles, Hero Motors said in a statement.
Hero Motors, a part of the Munjal family-owned Hero Group, will own 66.6 percent in the venture and contribute towards cost efficiency, it said.
Financial details were not disclosed.
The Hero Group, which owns 26 percent in India's top motorbike maker Hero Honda Motors Ltd. (HROH.BO: Quote, Profile , Research), has a components plant in Manesar near New Delhi and will use the facility for the new joint venture, a spokesman said.
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