Minda Corp signs JV with China’s BAIC Group subsidiary for Rs 83.5 cr
The total registered capital of the JV would be USD 5,000,000 (around Rs 33.3 crore), of which, Minda KTSN and SBHAP shall contribute for 50 percent of the equity interest in the JV from both parties.
NEW DELHI: Indian automotive component manufacturer Minda Corporation has signed a 50:50 joint venture with Shandong Beiqi Hai Hua Automobile Parts, China (a BAIC group subsidiary) through its 100 percent subsidiary Minda KTSN.
The total investment amount of the JV shall be USD 12,500,000 (around Rs 83.5 crore). The total registered capital of the JV would be USD 5,000,000 (around Rs 33.3 crore), of which, Minda KTSN and SBHAP shall contribute for 50 percent of the equity interest in the JV from both parties.
This joint venture shall initially focus on producing and selling products such as ‘Plastic Oil Pans and Cylinder Head’ along with other plastic under-bonnet / interior parts. It shall also have the rights for production and marketing of Minda KTSN products within china.
The new joint venture shall be known as ‘Minda China Plastic Solutions Ltd’ and the start of production is expected in next 12 to 15 months. The JV shall be targeting global orders of major OEMs (such as VW, BMW and Daimler) having their manufacturing plants in China.
SPARK MINDA, Ashok Minda Group has joint ventures / technical collaborations with global leaders like Furukawa of Japan, Stoneridge of USA, VAST Access System of USA, Silca of Italy and UzAvtosonat of Uzbekistan. Minda KTSN contributed 16 percent of Minda Corp’s FY2016 revenues and has plants in Germany, Poland and Czech Republic for products such as Plastic Interior trims & Subsystem, Kinematic Modules, Structural Modules, Soft Touch Technology.
Minda KTSN is also in the process of setting up greenfield plant at Queretaro, Mexico for plastic interior parts.
SBHAP is located in Boshan District of Zibo City, Shandong Province. BAIC Group is a leading automotive parts manufacturers in China in Interior and Exterior systems. BAIC Group (founded in 1958) has realized vehicle sales of 2.49 million and operating revenue of RMB 345.22 billion (around Rs 3,478 crore).
Commenting on the development, DC Sharma, Group Chief Financial Officer said “We are delighted to announce the strategic partnership with BAIC group. BAIC has an outstanding reputation in the industry and has significant complementary synergies with our Group. Together, the new stronger JV is fully committed to the manufacturing excellence and providing technologically advanced interior plastic products in China.”
He further added, “This strategic alliance with BAIC group and entry into high growth Chinese territory shall also provide us platform in China to cater leading OEMs for our other legacy business / products. We continue to expand our capabilities through both organic and inorganic growth. We acquired Panalfa Autoelektrik this year and also started building greenfield plants in Pune and Mexico. This maiden JV in China would further help us in expanding our international footprint and cater to global OEM customers.”