Loan for Japanese Motorcycle and Automobile Parts Manufacturer in India
Providing Local Currency Loan to Support Japanese Company with Overseas Operations
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed a loan agreement*1
amounting up to INR280 million (JBIC portion) with Mikuni India Private Limited (MID), an Indian subsidiary of MIKUNI CORPORATION. The loan is co-financed by The Bank of Yokohama and The Bank of Iwate.
MID manufactures and sells fuel injection systems and other parts of both motorcycle and automobile in the Neemrana Industrial Park, Rajasthan State, India. The loan will be used to expand MID's production capacity. MID performs manufacturing operations with careful attention to the environment, as evidenced by its cooperation with Japan's New Energy Development Organization on demonstrating a microgrid system for solar photovoltaic energy power supply in the Neemrana Industrial Park. The loan intends to support Japanese company in making regional investments under the Delhi-Mumbai Industrial Corridor Project, a joint India-Japan regional development project.
India is the largest motorcycle market in the world and the fourth largest automobile market, and both markets are expected to see economic growth further. In light of this, global motorcycle and automobile manufacturers, especially Japanese auto manufacturers, are expanding their production in India. The loan aims to support increase production capacity of MID's automotive parts and contribute to maintaining and increasing the international competitiveness of Japanese company through financing in Indian Rupee.
As Japan's policy based financial institution, JBIC will continue to provide financial support to assist Japanese companies in expanding their overseas businesses by drawing on its various financial instruments for structuring projects, including local currency loans, and by enhancing its risk-taking and managing measures.
JBIC signed this loan agreement on March 28, 2018.