Modi’s ‘Make in India’ drives Igarashi Motors back to the country

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Modi’s ‘Make in India’ drives Igarashi Motors back to the countryWhen Prime Minister Narendra Modi met top Japanese business leaders during his tour last year, president of Igarashi Electric Works, Keiichi Igarashi, gave it a miss, and later regretted it.
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Modi had pitched ‘Make in India’ in Japan and business leaders were quite attracted to it and quite a few commitments were made too.

Igarashi, who rued a missed opportunity, wants to now re-enter India, making the most of Modi’s pet project of turning India into a manufacturing hub.

Igarashi had sold its stake in Chennai-based Igarashi Motors to a local auto component player, HBL Power Systems, in 2010 due to global financial crisis.

Reportedly, American private equity giant Blackstone later bought the stake from HBL becoming the owner of Igarashi Motors India Ltd (IMIL).

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After hearing about 'Make in India', Igarashi felt that he had a committed a mistake in selling out and now is all set to make a comeback.

"Modi was talking about many things like exports and women empowerment that IMIL was already doing," Keiichi Igarashi told Economic Times in an exclusive interview.

He further told the financial daily around 90% of employees at IMIL's Chennai factories are women and the firm is a big exporter.

“Narendra Modi-Shinzo Abe friendship was an important factor and that he did not need any other reasons,” said Igarashi, who will soon announce the purchase of Blackstone's stake in IMIL.

As per news reports, the private equity arm of Tata Capital will invest nearly $33 million to become a partner. Investment banking firm MAPE Advisory Group will invest $9.4 million for a small stake.

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IMIL shares ended 0.61% up at Rs 659.25 valuing the firm at about Rs 2,000 crore.

IMIL makes DC motors and motor sub assemblies for global auto industry, according to a presentation seen by ET.

(Image: Reuters)