Japanese auto giant Honda has reached an agreement to dissolve their 26-year old joint venture, Hero Honda, with the Hero Group by selling its entire stake in India's largest two-wheeler maker. Honda Motor Co is expected to sell its entire 26 per cent stake in Hero Honda to its partner Munjals-promoted Hero Group and would earn $1.2 billion from the sale, Kyodo reported quoting Japanese Nikkei business daily. “Honda and the Hero Group have reached the basic agreement this week to dissolve the partnership,” Nikkei said, adding that the two companies will seek final approval from their respective board of directors later this month for the break-up. The parting of ways comes 26 years after the joint venture was set up in 1984. […]

Private equity firms Carlyle and TPG are set to buy up Honda’s stake in Indian motorcycle company Hero Honda, according to reports. The Munjal family, who set up the Hero Group, are set to buy back the Japanese auto giant’s 26 per cent holding, before selling most of it on to the two firms. It is expected that the US private equity firms will end up paying $1.4bn for some 18 per cent of Hero Honda, a discount on the market price of the shares but more than the Munjals will pay Honda. The business has been run as a joint venture between Honda and the Hero Group for 26 years, but the two will become competitors once the Japanese company pulls out. Honda plans to ramp up the size of its subsidiary, Honda Motorcycle and Scooter India. Honda’s exit has been held up by the objections of some shareholders, given talk of increased payments to Honda for the use of its technology. […]

Volvo Buses India Private Ltd (VBIPL) on Monday announced that it had bought out, for an undisclosed amount, the stake held by its JV partner, Jaico Industries of the Azad Group, thus increasing its ownership share from 70% to 100%. Akash Passey, managing director, said that the Swedish parent, Volvo Bus Corporation (VBC), intends to make India a global manufacturing hub for Volvo buses for exports to different regions, and that they had targeted reaching a revenue of $1 billion (Rs4700 crore) from Rs500 crore this year, in a time frame of five years. Rune Lundberg, senior vice president, VBC, said that the company would establish a “substantial industrial presence” in India with additional capacity, more local R&D, and ramped-up hiring from its current strength of 1000 personnel. […]

The owners of Mumbai-based fashion house Kimaya Studios are said to be involved in preliminary talks with a host of private equity (PE) firms to divest around 20 per cent stake in the company for close to Rs.100 crore. The funds raised will be channelised towards expansion plans and ramp up the number of stores in the country. “India has the potential to become the next fashion hub of the world. Fashion has moved beyond metros and large cities, and become a pan-India language. Therefore, we are looking to expand our operation in a significant way,” said Pradeep Hirani, who along with wife Neha Hirani, set up Kimaya in 2002. He, however, refused to divulge details of his fund-raising plan. Kimaya plans to open at least 50 multi-brand retail stores in the country over the next three years from the existing 16 stores. Some of these stores will come up in tier-I and tier-II cities such as Chandigarh, Ludhiana, Surat and Ahmedabad. Besides, it is also looking to foray into the US and European markets after setting up shop in Dubai. […]