The initial investment is expected to total approximately €15 million (approximately Rs75 crore). The project will be funded through a mix of equity and debt.

According to the agreement, Magneti Marelli will hold a 51-per cent stake in the joint venture company, Suzuki, 30 per cent and Maruti, 19 per cent.

The new joint venture firm, with a peak production capacity of 500,000 control units per year, will be a part of the 100-acre Suppliers'' Park being set up by Maruti Suzuki at its Manesar campus. Production is scheduled for the end of calendar year 2008.

The electronic control units produced in Manesar, in the industrial district of Gurgaon, will be initially used for Maruti Suzuki diesel cars and, later on, will also cater to other car manufacturers.

It will form part of the Suppliers'' Park spread over 100 acres being set up by Maruti Suzuki at its campus in Manesar.

The project will be funded through a mix of equity and debt.