Minda Industries to invest Rs 33.5 cr in JV firm

Mumbai, Apr 1 () Auto components maker Minda Industries on Wednesday said its board has approved Rs 33.5 crore investment in TG Minda and the proceeds will bed utilised to consolidate the business of the joint venture entity.

TG Minda is a 49.9 per cent JV between the company's parent firm UNO Minda and Toyoda Gosei, Japan (TG).

"Board of Minda Industries Ltd. has approved an investment of Rs 33.5 crore in TG Minda, a 49.9% joint venture of UNO Minda and Toyoda Gosei, Japan (TG).

"The proceeds of the investment will be used to consolidate the business of TG in India by transferring the shares of Toyoda Gosei South India Ltd. (TG SIN) to TG Minda," a release said.

TG SIN is a 95 per cent subsidiary of Toyoda Gosei (TG) and engaged in the business of interior and exterior plastic moulded components for automotive application.

Consolidation of TG SIN will result in several synergies such as optimal production system, flexible supply chain, complementary product lines and customer synergies, the company said.

The transaction is subjected to regulatory approvals, it added, adding the transaction is expected to be completed by September 2020.

"UNO Minda Group is focused on maximising its content/kit value across the vehicle segments and this is a step forward in this direction. We have strengthened our relationship with Toyoda Gosei further, with this investment," said N K Minda, Chairman & Managing Director, Minda Industries Ltd.

TG SIN reported a turnover of Rs 377 crore in FY2019, according to the company. IAS

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