Struggling to make a mark in the Indian market, Japanese two-wheeler major Yamaha, on Wednesday, said it will replace its existing venture here by a joint-venture with compatriot Mitsui & Co.
The joint venture, to be named India Yamaha Motor Private Limited (IYM), would take over the existing manufacturing and business operations of Yamaha Motor India Private (YMI) Ltd starting April, the company said in a statement.
Restructuring plans
Yamaha, which has so far invested Rs 160 crore in the Indian operations, said it planned to eventually take it up to Rs 560 crore to strengthen its position. After restructuring, the company said, in the first year of operations (nine months period starting April 2008) it expects sales worth Rs 1,000 crore.
Mitsui, which had last year acquired three per cent stake in Yamaha, will pick up 30 per cent stake in the IYM, the company statement pointed out.  “In this way, IYM will increase its total capital to a planned Rs 560 crore (approximately 14.6 billion yen) and utilise the same factory and office facilities used by its predecessor, India Yamaha Motor, to take over India Yamaha Motor’s manufacturing and business operations beginning from April,” the statement further added. Incidentally, Yamaha currently employs about 2,000 employees in India. When contacted about possible changes due to new development, a YMI spokesperson said: “It will be business as usual for the employees and business partners of YMI.” Yamaha currently employs about 2000 employees in India.