Aisan Industry Co., Ltd. ("AISAN") announces that, at the Board of Directors on March 29, 2018, it was resolved to establish a new subsidiary, as follows:

1. Reasons for establishing a new company
India is now the world biggest two-wheelers market and still has growth potential. In addition, upcoming implementation of "Bharat Stage VI", stricter emission standards, by April 2020 are to accelerate replacing conventional carburetor by Fuel Injection system. AISAN builds a new subsidiary to expand two-wheelers and three-wheelers businesses nationwide.

2.About the Subsidiary
(1) Name
To Be Determined
(2) Location
National Capital Territory of Delhi, India
(3) Representative
To Be Determined (Will be appointed by AISAN)
(4) Business
Production and sales of fuel pump module for two-wheelers and three-wheelers
(5) Initial Capital
INR 1 billion
(6) Foundation
Scheduled for June 2018
(7) Major Shareholders
AISAN 69%, FIEM 26%
(8) Relationship with our company
There are no matters to be stated

3.About the Joint Venture Partner
(1) Name
FIEM Industries Limited
(2) Location
National Capital Territory of Delhi, India
(3) Representative
J. K. Jain, Chairman & Managing Director
(4) Business
Production and sales of parts for automobile and two-wheelers
(5) Capital
INR 131 million
(6) Foundation
1989
(7) Major Shareholders
J.K. Jain22%、Seema Jain22%、Rahul Jain12%、Aanchal Jain6%、Saif India V Fii Holdings Limited6%
(8) Relationship to AISAN
Based on Technology License and Assistance Agreement, AISAN has provided technical support to FIEM regarding carbon canister for two-wheelers.
(9) Net Assets
INR 4,233 million
(10) Total Assets
INR 8,898 million

4. Schedule
(1) Date of Resolution   March 29, 2018
(2) Date of Agreement   March 30, 2018
(3) Date of Establishment of a new subsidiary   Scheduled for June 2018

5. Financial Impact
Aisan does not expect any effects on our consolidated financial results for FY2018.

Note) The above predictions have been made based on the information available as of the time of writing, and actual business performance may differ from the predictions owing to various factors.