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Japanese firm to pick up 26% stake in Wheels India subsidiary

Press Trust of India  |  Chennai 

Ltd, a TVS Group company, today said Japan-based Topy Industries would pick up a "minority stake" in its subsidiary firm, Car Wheels Ltd, subject to regulatory approvals.

and Topy Industries have reached an agreement regarding a "strategic partnership" in the passenger car steel wheels business. As per the agreement, Topy Industries would acquire a 26 per cent stake in Car Wheels Ltd (WCWL), a wholly owned subsidiary of WIL, the company said today.

The passenger car steel wheels business of reported a turnover of Rs 224.30 crore in FY 2017.

"Share capital of WCWL is Rs five crore. Topy will invest Rs 80-90 crore in the new company", Ltd., Managing Director, Srivats Ram.

"The new company (that would be formed following the partnership) would have five member board comprising three from Wheels India, one from Topy Industries and one an Independent Director", he told reporters.

Stating that has had a technical collaboration with Topy Industries for five years, he said, a "new greenfield factory in Gujarat would be set up under the partnership".

"This is likely to come up in 2018 with a capacity of around 1.5 million passenger car steel wheels", he said.

"Wheels Cars Wheels Ltd will strengthen its overseas passenger car business through this partnership. This partnership will help drive growth in passenger car business".

currently holds 43 per cent market share in passenger car steel wheels category, he said.

Topy Industries Ltd with revenues of USD 2 billion is engaged in manufacturing of steel wheel for automobiles. It has production units in Japan, US, China and Mexico.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 16 2017. 17:42 IST