The Rs.1000 crore NK Minda Group announces a new JV with
Tokai Rika, Japan
· The new JV to invest Rs.100 crore
· Equity participation in the ratio of 30:70 from Minda and Tokai Rika
·To set up plant in Karnataka to manufacture Seat Belts, Locks & Immobilizers
The Rs.1000 crore NK Minda Group today announced the formation of a new Joint Venture with Tokai Rika, Japan for the manufacture of Automotive Seat Belts, Locks & Immobilizers. The new company will be called Tokai Rika Minda India private limited and will have an equity participation of 70% from Tokai Rika while the balance 30% will be held by the NK Minda Group.
The new company will invest Rs.100 crore in setting up a new Greenfield facility at Bangalore, Karnataka for the purpose. The commercial production will coincide with the roll out of the Toyota new strategic small car from its second plant, which is slated to begin in 2010. The company has already got a LOI from Toyota Kirloskar Motors Limited for the supply of Seat Belts, Locks and Switches.
Speaking on the signing ceremony in Japan, Mr. Nirmal K Minda, Chairman and Managing Director, NK Minda Group said, “This new JV with Tokai Rika cements an already existing relationship and marks another important milestone in our journey to become a recognised global player with emphasis on technology and development.â€
Mr. K Kinoshita, President, Tokai Rika said, “We have strong ties with NK Minda Group from the past decade. The new JV will build upon our existing relationships with OEM’s and the trust that Minda Brand enjoys in India.â€
NK Minda Group and Tokai Rika already have a JV, Minda Rika Pvt. Ltd. (MRPL) for the manufacture of automotive switches for 4 wheelers and Mirrors. MRPL has a 50% market share in 4 wheeler switches and has a turnover of more than Rs.130 crore. The NK Minda Group holds 60% in MRPL while Tokai Rika has 35% the balance 5% being held by Sumitomo of Japan.
About NK Minda Group
The NK Minda Group is already manufacturing 2,3 wheeler and off road vehicle switches, 4 Wheeler switches, Lighting for 2,3 and 4 wheelers, CNG/LPG kits, Horns for 2,3 and 4 wheelers, Mirrors, Automotive Batteries, Blow Moulding Parts, and Body Control Units (BCU). It has 19 manufacturing facilities spread across India and one in Indonesia. The group has a 70% market share in 2 wheeler switches, 50% in 4 wheeler switches, 45% in horns, 80% in CNG/LPG kits for OEM’s, 15% in lighting.
About Tokai Rika
Established in 1948, Tokai Rika, Japan is an over US $4 billion Toyota group company and its major customers include – Toyota Motor Corporation, Daihatsu, Hino, Mitsubishi, Suzuki, Mazda, Honda, Nissan, GM, Daimler Chrysler, Ford, Volvo, Saab, Isuzu, Fuji Heavy industries Ltd., etc. The company manufactures Automotive Switches, Locks and Keys, Seat belts, Shift levers, electronic parts, steering wheels, connectors, mirrors, plastic wheel covers, ornaments and household electrical appliances.
