Tier 1 supplier, UNO Minda plans to further strengthen its partnership with Japan’s Toyoda Gosei, for which the Board of Minda Industries today approved an investment of Rs 33.5 crore, in TG Minda, a 49.9 percent joint venture of UNO MINDA and Toyoda Gosei, Japan (TG).
The investment will be used to consolidate the business of Toyoda Gosei in India by transferring the shares of Toyoda Gosei South India, a subsidiary of TG (TG SIN) to TG Minda. The transaction is subject to customary regulatory approvals.
TG Sin is engaged in the business of interior and exterior plastic molded components for automotive application, and had a turnover of Rs 377 crore in FY2019. The transaction is expected to be completed by September 2020. According to UNO Minda the consolidation of TG SIN will result in several synergies through optimal production system, flexible supply chain, complimentary product lines and customer synergies.
Commenting on the move, N K Minda, chairman and MD, Minda Industries said: “UNO Minda Group is focused on maximising its content/kit-value across the vehicle segments and this is a step forward in this direction. We have strengthened our relationship with Toyoda Gosei further, with this investment. We are excited about our partnership with TG and will continue to serve our customers with continued vigour.”