Gurugram (Haryana) [India], Apr 1 : The board of directors at Minda Industries Ltd has approved an investment of Rs 33.5 crore in TG Minda, a 49.9 per cent joint venture of Uno Minda and Toyoda Gosei of Japan.
The proceeds of the investment will be used to consolidate Toyoda Gosei's business in India by transferring the shares of Toyoda Gosei South India Ltd (TG SIN) to TG Minda. TG SIN is a 95 per cent subsidiary of Toyoda Gosei.
The transaction is expected to be completed by September.
TG SIN reported a turnover of Rs 377 crore in FY 2019. It is engaged in the business of interior and exterior plastic moulded components for automotive applications.
Consolidation of TG SIN will result in several synergies like an optimal production system, flexible supply chain, complementary product lines and customer synergies.
"Uno Minda Group is focused on maximising its content kit value across the vehicle segments and this is a step forward in this direction," said N K Minda, Chairman and Managing Director of Minda Industries Ltd.
"We have strengthened our relationship with Toyoda Gosei further with this investment. We are excited about our partnership with TG and continue to serve our customers with continued vigour," he said in a statement on Wednesday.
Minda Industries Ltd is a flagship company of the Rs 8,000 crore Uno Minda Group. The Group has overseas manufacturing facilities in Indonesia, Vietnam, Spain, Mexico, Morocco and Colombia as well as design offices in Taiwan, Japan and Spain.
( With inputs from ANI )