Rico Auto Chairman Arvind Kapur Resigns From Subsidiary Firm FCC Rico Limited Board

Following the entire stake sale in FCC Rico Limited, a joint venture between Rico Auto and Japanese firm FCC Co Ltd, Arvind Kapur, chairman of Rico Auto, has now resigned from the Board of the company. Rico Auto had sold its entire 50% to FCC in September this year for Rs 495 crore.

“…Pursuant to the divesture, the nominee directors of Rico Auto Industries Limited appointed to the board of FCC Rico Limited including Arvind Kapur have also resigned from the board of directors of FCC Limited with effect from today,” the company informed National Stock Exchange in a letter dated December 23, 2014.

It should be noted that the board of Rico Rico Auto had approved the divestment of stake in its joint venture on September 25, 2014. The joint venture was established in 1997 and was exclusively into manufacturing and supplying of automobile clutch assemblies to OEMs of two wheelers and four wheelers. Some of its primary clients include Honda group companies, Suzuki, Yamaha, TVS, Piaggio and Bajaj.

Rico Auto, in its quarter ended 30 June, has declared that auto component maker has carried out an assessment to determine if there is a permanent diminution in the value of investments in two of its subsidiaries Rasa Autocom Ltd and Rico Jinfei Wheels Limited.

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