Honda and UIL part ways in India
After pulling a plug on its 26-year old joint venture with Hero in India last year, Honda Japan has now dissolved its 16-year old partnership with Usha International Ltd (UIL). Honda will announce its new corporate identity and will be completing other formalities related to the diversification within a few months. The Shriram Group owned UIL had 3.16 per cent shares in the Honda Siel Cars India (HSCI) joint venture, which are now sold to Honda at Rs 100/share.
From the past few months, the former partners were in deep drawn discussions over the value of UIL's holding in the joint venture. It is said that plans for the separation started when Honda proposed investments for a diesel facility in India, which was turning out to be too expensive.
Commenting on the development, Hironori Kanayama, president and CEO HSCI said, "We have shared a very successful and fruitful relationship with UIL over the past 17 years. I would like to take this opportunity to express my appreciation for Siddharth Shriram's contributions to HSCI and wish UIL a bright future."