KOLKATA: National Engineering Industries (NEI), a GP-CK Birla group company, has set up a joint venture with its two-decade-old technology partner, NTN Corporation of Japan, for producing a key automobile component. The plant will be located at the Bawal growth centre in Haryana.

For NTN, a precision equipment maker, this is its tenth global production base for constant velocity joints (CVJs). The company, which is the world's fifth in terms of bearing sales, has units in the U.S., Europe, and China. By including India in its global plans, NTN is accelerating its progress into the BRIC nations (Brazil, Russia, India and China), a release said. The Haryana plant is likely to become a hub for global supplies, besides catering to the booming Indian automobile industry. The initial capital of this project would be 300 million yen ($2.5 million) with NTN putting in 80 per cent of the money and NEI the balance. Operations are likely to start by March 2007. The initial investment has been pegged at two billion yen ($16 million).

Constant velocity joints (CVJs) are regarded as a strategic product by NTN. It is used to transfer the rotational force of the engine to the wheels of a vehicle reducing noise, vibration and harshness, thus enabling a quite and comfortable ride. NTN is ranked no 2 in terms of global market share of this component. NTN's Indian unit is expected to raise its market share especially in the case of vehicles made in India by Japanese automakers.

India, according to the release, saw the fourth largest automobile output in Asia after Japan, South Korea and China. Domestic production is likely to touch 2.3 million vehicles by 2010, the release said.

As for NEI, it is a Rs. 470-crore-turnover company making ball and roller bearings. It has plants in Jaipur, Newai and Manesar in Rajasthan. It has had a technical collaboration with NTN since 1985.

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