Minda Industries form JV with Japan's Katolec for electronic products

JV plans to set up a facility in Pune to make products such as PCBs & box build assemblies

Last Updated : Feb 23 2017 | 10:24 AM IST

Minda Industries Ltd, a flagship company of UNO Minda Group (one of the leading suppliers of auto components), has formed a joint venture with Japan's Katolec Corporation to manufacture high-end electronic products such as printed circuit boards (PCBs) and box build assemblies in India.

While Minda Industries will own 51 percent stake in the JV, to be named Minda Katolec Electronics Services Pvt Ltd, Katolec will hold the remaining stake.

The JV, which will initially involve investment outlay of Rs 40 crore, plans to set up a facility in Pune (Maharashtra) as an electronic manufacturing services company offering turnkey as well as job work solutions.

Minda Industries Ltd, one of the leading suppliers of switch, horns and lightings to the automotive industry, has an existing operations for electronics manufacturing in Pune as (sensors, actuators & controllers) SAC division which currently serves 2-wheeler & 4-wheeler customers like Tata Motors, Mahindra, General Motors besides HMSI, Hero Moto Corp, Bajaj Auto, etc.

Minda expects the JV to achieve additional synergies in areas of product development & technology which will result in stronger customer footprints including both OEM as well as end customers. “With advancement in technology, the content of electronics in automobiles will continue to rise. This joint venture will help Minda Industries to further strengthen its product portfolio and offer value added products to customers,” commented Nirmal Minda, CMD, Minda Industries Limited.

Katolec Corporation, with sales of JPY 81.6 billion ($ 742 million), is among the leading companies of electronic manufacturing service offering end-to-end solution, ranging from circuit design, parts procurement, board mounting and final box assembly to delivery. It has considerable expertise in the field of printed circuit board manufacturing of high quality which meets expectations from automotive industry in Japan. Having launched second factory in Mexico last year, Katolec fulfils a demand with factories in Japan, Indonesia, Thailand, Philippines, Vietnam, China, and Malaysia.

UNO Minda Group is a leading supplier of proprietary automotive solutions to original equipment manufacturers (OEMs) as tier 1. The Rs 44 billion ($ 662 million) group is a global player in the automotive sector with overseas manufacturing facilities in Indonesia, Vietnam, Spain & Colombia as well as design offices in Taiwan, Japan & Spain. It has 40 manufacturing plants in India and has JVs and technical agreements with world renowned manufactures from Japan, Italy and India.