Mumbai, June 23 -- Under the agreement, the company and Kaga Electronics will set up a joint venture (JV) company to establish, develop and operate a technologically advanced, state of the art EMS manufacturing facility together in India focusing on Japanese clients. In the JV that is proposed to be incorporated, the company will own 60% of the equity shares for total consideration of Rs 15 crore and Kaga will own 40% of the equity shares of the JV for total consideration of 10 crore.

The board of directors of the JV shall comprise of 4 directors, 2 directors nominated by the company and 2 directors nominated by Kaga. Further, the agreement provides for certain customary rights and restrictions for a joint venture. In the event of either...