Mitsui corporation has picked up 30% percent stake in Japanese two-wheeler maker, Yamaha Motor’s Indian operations for 168 Crore rupees. Mitsui, last year had also acquired 3% stake in the parent company, Yamaha Motors Japan.

Yamaha Motors operated in India with two subsidaries, Manufacturing and Business operation which will now be a part of the newly formed single company christened India Yamaha Motors from April 2008 onwards. The total capital of Yamaha Motor India was 160 Crores while the total capital IYM would be 560 crores, of which 232 crores would be pumped in by parent company Yamaha Motors Japan and while 168 Crore comes from the Mitsui Investment. The losses of YMI are also being written off by and absorbed by the parent company. “The reason for dissolving the old unit is because it has had loses since at least 2001,” said Yamaha spokesman Takashi Kitagawa. “The company will rebuild the unit with help of Mitsui.”

The fresh investment will go into launching new products in the domestic market with contemporary technology as well as new marketing campaign aimed to arrest sliding market share which dropped to a dismal 4% in the 7.5 million strong Indian two-wheeler market. The company hopes to turnaround its fortunes with these initiatives.

The company spokesperson said, “After the entire restructuring, we are targeting a total sales turnover of Rs 1,000 crore during the nine-month period starting April to December 2008. We will be utilising the existing two manufacturing facilities of the company and the additional investment (total capital of Rs 560 crore ) will be utilised from April onwards. Based on this, YMI will promptly begin the closing of its books and corporate liquidation immediately.”