NK Minda forms 2nd JV with Tokai Rika

In addition to the existing JV called Minda Rika, NK Minda Group and Tokai Rika of Japan "" a Toyota group company "" have initiated a second collaboration called Tokai Rika Minda India (TRMIPL) with an initial investment of Rs 100 crore.

The equity participation will be 30:70 with Tokai Rika holding the majority stake.

TRMIPL will set up a factory for the JV in Bangalore, which will manufacture seat belts, locks and immobilizers primarily for Toyota's strategic small car, expected to be launched by 2010.

The first collaboration, Minda Rika (MRPL), currently manufactures automotive switches for four-wheelers and Mirrors.

MRPL holds a 50 per cent market share in four-wheeler switches and has a turnover of more than Rs 130 crore.

The NK Minda Group holds 60 per cent stake in MRPL while Tokai Rika has 35 per cent and the balance 5 per cent is held by Sumitomo of Japan.