CHENNAI, July 10: The Ucal group has entered into negotiations with the $33-billion Mitsubishi Electric for transfer of technology to manufacture automotive components including electrical fuel pumps.

The talks are expected to conclude soon, group chairman S Muthukrishnan said. ``We are yet to decide if these products will be manufactured in Ucal Fuel Systems or in other group companies,'' Muthukrishnan said. He, however, refused to divulge details, saying that the tie-up would be made public at an appropriate time.

The electrical fuel pumps project is being considered keeping the Maruti Zen and the Esteem in mind. The group may set up a manufacturing facility in Maraimalai Nagar near Chennai with an initial investment of about Rs 1 crore. The project comes after the company decided to enter into new product lines. Ucal Fuel recently received a letter of intent from Hyundai for the supply of throttle body assemblies. Talks are on for supply of delivery pipes as well. The company has finalised plans to set up a plant near Pune to cater to Bajaj Auto requirements. Autolec Industries Ltd, another Chennai-based company, recently commissioned its facility for the manufacture of electrical fuel pumps. Autolec is currently making these pumps with components imported from its collaborator, Pierburg of Germany. The plant has a capacity to make one lakh pumps a year.

Autolec's samples of electrical fuel pumps have already undergone endurance tests and supplies to Maruti's Zen and Esteem are likely to start this month. The Ucal group will unveil its product diversification plans shortly. It is expected to move away from carburettors into more advanced product lines.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.