News Release

Dec. 12, 2005
Daifuku Co., Ltd. (headquartered in Osaka under President and CEO Katsumi Takeuchi), seeking to meet the demands of India's rapidly advancing automotive industry, in October, established an overseas affiliated company Daifuku India Private Limited (hereinafter called "DIPL") in suburban Delhi. This new company is assigned for sales, installation, and after-sales service of our automobile production line systems, and has launched its operations in December 2005.

Daifuku's automobile production line system business is pursuing a global strategy of staying in close contact with users so as to grasp their needs ahead of any competitor. The establishment of DIPL in India is especially for the conquest of the rapidly growing markets in Brazil, Russia, India, and China (BRICs), in addition to having unfolded three overseas affiliated companies in China with a plan to launch a local production starting in December 2005.

DIPL is capitalized with 20 million rupees (approximately 50 million yen), including 99% by Daifuku and 1% by APS Inc. (Daifuku's wholly owned subsidiary in Japan). The main office is located in Delhi and is starting with six employees, one residing Japanese officer (president) and five local staff. In addition to sales, installation, and after-sales service, they will be responsible for commissioning the manufacture of peripheral equipment to the collaborative local companies. According to the sales plan, sales are projected to reach 500 million yen next year (the term ending in December 2006) and more than 1,500 million yen in fiscal year 2010. In the future, a branch office is scheduled to open in the southern region, in keeping with the growing numbers of new users.

It is predicted that India's total population will surpass that of China by the year 2015, making it the world's most populous country (approximately 1.5 billion). This is expected to generate dramatic economic growth in the future India. Moreover, in the automotive industry, the sales volume of automobiles reached the mark of one million vehicles in 2004. It is expected to exceed two million vehicles in 2010. Accelerated by the emergence of India's leading automobile manufacturers such as Maruti Udyog Ltd. (Suzuki's automobile production/distribution subsidiary in India) as well as various Japanese automakers, Daifuku's expansion projects are becoming reality one after another.

Company name:

Daifuku India Private Limited

Location:

18 Ramnath House, Community Centre, Yusef Sarai, New Delhi 110016 INDIA

Paid-in capital:

20,000,000 rupees (Approx. JPY 50 million)

Start of
operations:

December 1, 2005

Representative:

Katsuo Tsuji, President
(Manager of Global Manufacturing Group, Manufacturing Division, Automotive Factory Automation Operations, Daifuku Co., Ltd.)

APS Inc. Corporate Profile
Daifuku's wholly owned subsidiary that provides design and engineering for automobile production line systems

Paid-in capital:

JPY 30 million

Headquarters:

Osaka

Representative:

Yoshimasa Matsunoo, President