In a bid to cater to the growing demand for aluminium wheels in India, Tier 1 component supplier UNO Minda has signed a joint venture agreement with Kosei Aluminum Co of Japan to manufacture and sell alloy wheels in India. The two companies already have a JV plant in Chennai since 2010.

The new joint venture pact took place today at Kosei’s head office in Toyota City, Aichi, Japan and was signed by N K Minda, CMD, UNO Minda, and Shunkichi Kamiya, president and CEO, Kosei Group. While UNO Minda will have the majority 70 percent equity stake, Kosei Aluminum will have the balance 30 percent. The new project will see an investment of Rs 200 crore in the first phase of production.

The plant for the new JV – called Minda Kosei Aluminum Wheel – will be set up in Bawal, Haryana and will engage in the development, manufacture and sale of aluminium alloy wheels to major OE car manufacturers. The start of production is planned from February 2016 with a capacity of 60,000 units per month in the first phase.

“We have been associated with Kosei since 2010 and with this new JV, we are confident that this would further strengthen our association. Also with technical support of Kosei, we will be able to serve our customers with quality alloy wheels. We have confirmed business from Maruti Suzuki and are in advance stage of discussions with Mahindra & Mahindra,” reiteriated N K Minda.

The Kosei Group’s president Shunkichi Kamiya added, “We are confident that with UNO Minda having a strong customer base in India, we will be able to increase our footprint in the growing Indian market and contribute to the development of the industry.”

With this latest JV, UNO Minda further increases its penetration of the Indian market. At present, the 3,200 crore NK Minda Group manufactures a varied range of auto components for OEMs in India and abroad. It has manufacturing facilities in Indonesia, Vietnam and Spain and offices in Japan, Europe and China. In India, it has 37 plants in India and has JVs/technical agreements with world renowned manufacturers in Japan, Italy and India.