Minda Industries' board approves merger with Harita Seating Systems

Auto component maker Minda Industries, the flagship company of Uno Minda, Friday said its board has approved merger of Harita Seating Systems with itself.

The transaction also encompasses Minda getting 51 per cent stake in Harita Fehrer Limited, a joint venture of Harita with Fehrer Automotive GmbH, one of the leaders in automotive seating business in Europe.

Harita, along with its subsidiary, has 12 manufacturing plants across India.

"This is the largest merger and acquisition (M&A) transaction that Uno Minda has undertaken. HSSL is a quality-focused, system-driven organisation and we are sure we will be able to take the business to the next level and create value for shareholders of both the companies," Uno Minda Chairman and Managing Director Nirmal K Minda said in a statement.

The amalgamation would offer immense opportunity to broaden the company's portfolio and invest in products that it believes are most relevant to customers, HSSL Chairman H Lakshmanan said.

Harita is engaged in manufacturing, product development and sales of driver seats and bus passenger seats. Its prominent customers include TVS Motor Company, Royal Enfield, TAFE, Daimler, John Deere and Tata Motors, among others.

It reported a consolidated turnover of Rs 905 crore and PAT (after minority interest) of Rs 38 crore for 2017-18.

Shares of Minda Industries were trading 1.61 per cent down at Rs 271.95 on the BSE.