Auto-components maker Minda Industries Ltd has received board approval to buy stakes in two joint venture companies from its group firms as part of an ongoing group consolidation exercise, as per a stock market disclosure.
The Mumbai-listed Minda Industries said it will acquire 51 per cent of Minda TG Rubber Pvt Ltd for about Rs 17.85 crore and 30 per cent of Kosei Minda Aluminum Co Ltd for about Rs 12.3 crore from group companies Maa Rukmani Devi Auto Pvt Ltd and Minda Investments Ltd, respectively.
Both transactions are subject to approval from its shareholders.
Minda TG Rubber is a joint venture formed in January 2015 with an investment of Rs 85.3 crore in a phased manner. Toyoda Gosei Co and Toyota Tsusho Corporation own 44 per cent and 5 per cent of the joint venture, respectively, while the Indian partner holds the remaining.
Minda TG makes fuel and brake hoses for automobiles. It targets clients such as Maruti Suzuki and Toyota Kirloskar. It has a factory at Bawal in Haryana.
Toyoda Gosei and Minda group have another tie-up. In 2011, the two companies formed Toyoda Gosei Minda India Pvt Ltd to produce safety systems such as airbags.
Kosei Minda Aluminum was also floated in 2011. It makes alloy wheel for automobiles. While the Japanese firm owns a 70 per cent stake in the JV, the Indian company holds the remaining. It supplies its products to Honda, Renault and Toyota Kirloskar Motors.
In the financial year 2015, Kosei Minda recorded revenue of Rs 125.3 crore compared with about Rs 67 crore the year before.
Both the transactions are expected to be completed before April 30, 2016.
The Minda group was founded in 1958 and has 37 manufacturing plants in India, Indonesia, Vietnam and Spain. It has design centres in Taiwan and Japan, and sales offices in the US, Europe and Vietnam. It also has a strategic sourcing office in China.