New Delhi, Aug 10: USHA International Ltd has sold its stake in Honda Siel Cars India Ltd, ending the 16 years of partnership, to Japan's Honda Motor Company, said the company release.
As per the deal Japanese auto major will buy all of Usha's 18 million shares in HSCIL at Rs 100 shares each, totaling Rs 1.8 billion.
Usha, with core business of electronics and home appliances, said "USHA is pleased to have helped one of the great companies’ of the world to settle into India and to offer the best products in the world to the Indian customers."
The relation dates back to 1985 when when Honda Siel Power Products (formerly known as Shriram Honda Power Equipment Ltd) started operations in India.
Although, Shriram/USHA had no experience or direct interest in the automobile business, Honda Motor found the characteristics of management and ownership highly suitable for the partnership in automotive business, said the company.
USHA provided some of its best people to help Honda Motor Company develop their Indian business, said the company adding that it was quite evident that some day the parting would come because automobiles are not really USHA’s direct business.
The proceeds form the stake sale would be applied to the normal development of USHA’s business, said the company.
With the ending of the JV, Siddharth Shriram would cease to be the Director and the Chairman in HSCI.