Minda Corporation, leading Indian automotive component manufacturer, has recently partnered with China’s BAIC group subsidiary, Shandong Beiqi Hai Hua Automobile Parts (SBHAP). The company signed the JV through Minda KTSN, its 100% subsidiary.
The 50:50 JV will cost the company almost Rs 835 million (equivalent to USD 12,500,000), with the registered capital of around Rs 333 million (i.e. USD 5,000,000). Of the total capital amount, 50% of equity interest in the JV will be contributed by Minda KTSN and SBHAP.
At first, the JV’s focus will be on manufacturing and selling of products like ‘Plastic Oil Pans and Cylinder Head’, and other plastic interior parts. In China, the new JV to be dubbed ‘Minda China Plastic Solutions Ltd’ can also produce and market the products of Minda KTSN. The production is expected to start in the coming 12 to 15 months. The main target of the JV will be global orders of big OEMs, including BMW, Daimler, and VW, which have their production units in China.
As per the report, Spark Minda, Ashok Minda Group is into partnerships with international leaders such as Stoneridge of USA, Italy’s Silca, Japan’s Furukawa, VAST Access System of USA, and Uzbekistan’s UzAvtosonat. Around 16% of FY2016 revenues of Minda Corp have been put in by Minda KTSN. Also, it has facilities in Czech Republic, Germany, and Poland for different products, including Kinematic Modules, Soft Touch Technology, Plastic Interior trims & Subsystem, and Structural Modules. Further, it has plans to build Greenfield plant at Mexico’s Querétaro for plastic interior components.
Group Chief Financial Officer, DC Sharma stated, “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.”
SBHAP is a Shandong Province’s Zibo City’s Boshan District-based company. Also,China’s BAIC Group is a well-known manufacturer of automotive parts forInterior and Exterior systems. The group has witnessed automobile sales of 2.49 million along with RMB 345.22 billion operating revenue.
Adding to his statement, Sharma said, “This strategic alliance with BAIC group and entry into high growth Chinese territory shall also provide us a 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 to serve our global OEM customers.”
This year, the company has also taken over Panalfa Autoelektrik and has begun with the development of Greenfield plants in Mexico and India.