There has been lot of news about joint venture between UIL (Usha International Ltd) and HSCI is coming to an end. For now the final decision has been taken to dissolve the 17 year old partnership between UIL and HSCI. The joint venture was started in 1995. The company currently has its facilities in Bhiwadi Rajasthan and at Grater Noida. The HSCI or Honda Siel Cars India currently produces Honda Civic, Honda City, Jazz, Brio and imports vehicle like CR-V.
The partners have signed up agreement for the complete disinvestment by the UIL, where it will be selling its 3.16% stake it holds in HSCI to the partner Honda Motor Co. Japan. After this HSCI will become 100% subsidiary of Honda. The formal process of changing of names and other issues will be tackled within a couple of months. Hironori Kanayama, President and CEO of HSCI hoped a bright future for UIL and expressed his gratitude to Siddharth Shriram who held the position of HSCI Director and chairman for his outstanding contributions to HSCI (following the division he will be discontinuing his post).
Talking about the USHA, he said that the firm has its relationship with UIL since 1985. At that time Honda Siel power products were called Shriram Honda Power equipment ltd. Even though USHA didn’t have any prior experience in the auto industry then also Honda chose it to be its partner for venturing in India.