PUNE, November 4: The joint venture between the Kalyani group and Teksid, a wholly-owned subsidiary of Fiat, for the manufacture of castings, will soon set up its plant in Goa. The location will be finalised in a month's time, Kalyani group chairman BN Kalyani said.

Kalyani said the project, estimated to cost Rs 100 crore, was on schedule, although it still required some approvals besides land acquisition and sorting out power availability. However, the foundry is not likely to require a large tract of land, he said. The two companies will have an equal equity participation in the venture. Teksid, a 100 per cent subsidiary of Italian car-maker Fiat, is among the largest castings manufacturers in the world. The joint venture is expected to export 50 per cent of its output -- 50,000 tonnes -- in the next five to six years. It is expected to produce up to 18,000 tonnes of castings by 1998.

Meanwhile, a slowdown in the auto industry has forced Kalyani to put on hold its proposed joint venture with the Korean Hanil E-Hwa Ltd, Kalyani said. The venture, which proposed to manufacture car-seating and interior systems, would have been Kalyani's maiden foray into the manufacture of plastic products. It also would have been an strategic entry point for the Rs 1,500-crore group to supply to a Korean auto company.

The venture was projected to require an investment of about $8 million and was to have a 50:50 equity participation.