NK Minda Group ventures into manufacturing of Automotive Safety Components

NK Minda Group, the technology leader in Auto Components Industry, has entered into an 82.1:5:12.9 Joint Venture (JV), with Toyoda Gosei Co., Ltd., Japan and Toyota Tsusho Corporation, Japan. The JV Company, to be named Toyoda Gosei Minda India Pvt. Ltd, subject to ROC approval, will develop, manufacture and sell automotive safety components like Steering Wheels, Airbags and Body Sealing parts for major Indian car manufacturers. The new JV was signed off by Nirmal K. Minda, CMD of Minda Industries Limited., and T Arashima, President of Toyoda Gosei Co., Ltd., Japan in end October. A key feature of the JV is the availability of top-notch Japanese technology of ‘Integrated Rubber Parts Production’, which Toyoda Gosei will bring to this joint venture, in order to ensure its cost competitiveness in the Indian market. This process is targeted to start production from May 2012 in Neemrana plant, where manufacturing of safety parts is already ongoing. The JV will also establish a new plant in Bangalore within two years. The capital of this Joint Venture is US$ 30.8 million (Rs. 1590 millon), in which Toyoda Gosei Co., Ltd. will hold 82.1pc stake, Toyota Tsusho Corporation will hold 5pc stake and Minda will hold 12.9pc stake, with an option to increase its share to 44pc in the next three years. On this occasion Nirmal K Minda, CMD of NK Minda Group, said, “Diversification is the key to growth in global markets. We have a vision to be a preferred supplier to major OEMs across the world. This Joint venture is an important step towards that vision.” He further added, “We are delighted to partner with Toyoda Gosei, a leading innovative auto component manufacturer, and see this as a great opportunity for introducing new technologies to Indian OEMs.”