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Despite the current uncertainty in the global steel industry, Japan's Kobe Steel has set up a subsidiary in Kolkata to market machinery and related equipment.
According to the Kobe Steel's industrial machinery division director, Kazuhide Naraki, the company had this plan two years back. He also added that this is the initial step the company has taken towards the development of steel market in India. He also added that the company has a target of about $50 million in a year.
The subsidiary called Kobelco Machinery India will sell the steel rolling mills, continuous casters, nonferrous rolling mills and presses which will be shipped from Japan.
He also added that the intention behind the setting up of this subsidiary is to provide a better after sales service to its customers.
The $22-billion Kobe Steel holds 90 percent stake in the subsidiary, while trading firm Shinsho Corp, a Kobe Steel affiliate, owns the remaining 10 percent. The Indian entity will have an equity base of Rs.4 million.
Naraki said the company has already received queries from "four-five Indian companies" but no details have been disclosed.
Kobe Steel also has plans to set up a manufacturing unit in Kolkata in about a year, he added.
