PPAP Automotive Limited has exited its 14-year-old rubber components joint venture with Japan's Tokai Kogyo Co. Ltd., receiving ₹100 crore in proceeds that will be used to reduce debt and fund strategic capital expenditure as the company refocuses its manufacturing operations.
14 Feb 2026 | 1 Views | By Sarthak Mahajan
PPAP Automotive Limited, a New Delhi-headquartered manufacturer of automotive sealing systems and interior and exterior automotive parts, has concluded the sale of its entire 50% equity stake in PPAP Tokai India Rubber Private Limited (PTI) to its joint venture partner, Tokai Kogyo Co. Ltd. of Japan, for a cash consideration ...
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PPAP Automotive Limited, a New Delhi-headquartered manufacturer of automotive sealing systems and interior and exterior automotive parts, has concluded the sale of its entire 50% equity stake in PPAP Tokai India Rubber Private Limited (PTI) to its joint venture partner, Tokai Kogyo Co. Ltd. of Japan, for a cash consideration of ₹100 crore.
The transaction, executed pursuant to a Settlement Agreement effective January 1, 2026, marks a complete exit by PPAP from the joint venture. The company stated it will carry no further obligations, commitments, or liabilities relating to PTI following the completion of the deal.
PPAP had originally invested an aggregate of ₹48.5 crore in the joint venture since its incorporation in 2012, making the divestment a return of approximately 2x on its invested capital. The 50:50 partnership was established for the manufacturing of EPDM rubber components and TPV Glass Run Channels for the automotive industry.
The company indicated that the ₹100 crore in proceeds will be directed toward reducing net debt and financing planned strategic capital expenditure. PPAP also noted that it intends to continue serving its customers' rubber component requirements independently, with plans to bring the EPDM rubber sealing system business under its own Chennai facility starting April 2026.
Ajay Kumar Jain, Chairman and Managing Director of PPAP Automotive Limited, acknowledged that the venture had underperformed over its lifespan and expressed confidence that the exit would strengthen the company's financial position and support future growth.
PPAP Automotive's customer base includes major original equipment manufacturers such as Maruti Suzuki, Honda Cars, Toyota, Tata Motors, Mahindra and Mahindra, Hyundai, Kia, and Volkswagen's Skoda Auto, among others.