Japan-based Koito Manufacturing Co. Ltd has said it will fully acquire India Japan Lighting Pvt. Ltd (IJLPL), which is the company’s joint venture with Chennai-based TVS Group.
The Tokyo-based company said it will acquire the remaining 29.9% stake in Chennai-based IJLPL for Rs 148.5 crore (approximately $20.85 million at current exchange rates), Koito said in a statement.
The acquisition will boost IJLPL’s and Koito’s profitability and growth keeping in mind the growing size of India’s automotive market, it added.
The company also said it does not expect the move to have any significant effects on its consolidated business results for the financial year 2020.
IJLPL, which was established in 1997, engages in the business of manufacturing and selling automotive lighting equipment to Japanese automotive manufacturers in India. The firm manufactures products such as halogen PES headlamps, tail lamps of different varieties and small lamps such as fog lamps and roof lamps, according to TVS’ website.
The company reported net sales of Rs 844.92 crore, Rs 898.88 crore, and Rs 815.98 crore for 2017, 2018 and 2019, respectively, according to VCCEdge, the data research platform of Mosaic Digital. It also reported a profit after-tax figures of Rs 48.37 crore and Rs 23.72 crore for the 2018 and 2019 fiscal years.
The TVS Group comprises over 40 companies that employ more than 25,000 people. These companies are operational in sectors such as two-wheeler and automotive component manufacturing, as well as finance and electronics.
In May, TVS Motor Co. Ltd invested $3.85 million (nearly Rs 27 crore) in machine learning company Tagbox Solutions as part of a Series A funding round. This marked the company’s second reported investment this year; it had also invested in the Pune-based Altizon Systems Pvt. Ltd, which develops solutions based on the industrial Internet of Things (IIoT).