A Piece of the Automobile Boom

A Piece of the Automobile Boom Hansavivek BHARAT GEARS is expanding and diversifying its activities. The Central government has approved its agreement with Zahnrad- fabrik Friedrichshafen (ZF) of West Germany for technical-cum-financial collaboration for manufacture of light commercial vehicles, trucks and buses. Under the terms of the agreement, ZF will hold 11 per cent of equity share capital in the Indian company and will have a director on its board. The company will be the first independent manufacturer of automotive gear boxes in India to produce light-weight sychromesh gearboxes of the latest designs. The company will soon come to the market to raise funds for the Rs 10 crore project which is already under implementation. Raunaq Automotive Components, jointly promoted by the company and PICUP to implement the project for the manufacture of 1,000 tonnes per annum automotive gears and 10 million numbers thin walled bi-metal bearings (also known as engine bearings) in the joint sector in UP has applied for financial assistance of Rs 6 crore including Rs 1.45 crore in foreign currency to IFCI. Construction of the factory building is to start soon.