Corporate - 19/01/2012
NSK Ltd. announced that one of its subsidiaries has become a specified subsidiary.
1. Reason for the change
To respond to the rapidly growing automobile market in India, which is undergoing continued economic growth, NSK is currently expanding operations of NSK-ABC Bearings Limited (hereafter, “NABI”), an automobile bearings manufacturer established as a joint venture with a prominent company in the region. NSK decided that it was essential to further increase the production capacity of NABI to prepare for growing demand forecast in the Indian market. Toward this end, the company increased its capital stake in NABI by 1,590 million Indian rupees (approximately 2.4 billion yen) on January 12, 2012. As a result, NABI’s capital amounted to a yen equivalent of about 7.1 billion yen. As the amount is equivalent to 10% or more of NSK's capital, NABI qualifies as a specified subsidiary of NSK.
2. Overview of the specified subsidiary
Company name: NSK-ABC Bearings Limited
Location: SIPCOT Industrial Park in Sriperumbudur, a city in the suburban area of Chennai, Tamil Nadu, India
Representative: Masatoshi Matsuda
Business activities: Manufacture and sales of bearings
Capital: 3.8 billion Indian rupees (approx. 7.1 billion yen) after increase in capital
Ownership ratio after increase in capital: NSK Ltd. 96.7%
ABC Bearings Limited 3.3%
Establishment: March 2007
3. Date of change
January 12, 2012
4. Future outlook
NSK does not expect any significant impact on its consolidated financial results in the current fiscal year as a result of the change to specified subsidiary.
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