Shiroki Corporation, Japan's leading automobile interior and exterior component makers and an affiliate of Toyota Motor Corp has entered into India through a stake in the Haryana based Technico Industries Limited in 2007. The Japanese company has now decided to take over the window and seat regulator manufacturing segment into a joint venture with Tehcnico.
Arun Gupta, MD of Technico Industries Limited (right) with Shiroko Corporation's representative for the JV
The joint venture will be known as Shiroki Technico India Private Limited and will be producing window regulators, seat sliders, hinges and other auto components for the Indian market. Shiroki will hold 50+1 percent of the venture and will have the veto authority as per the agreement that has been settled.
"The new JV Company is an important step for the Shiroki Corporation and represents strong intention of the Group to expand into the Indian market. We value our long term partnership with Technico and will continue to leverage our partnership to invest in product developments and innovations for markets both in India and around the world" said the representative of Shiroki Corporation who was present for the joint venture agreement.
Here is the press release
Shiroki Corporation (an affiliate of Toyota Motor Corp), one of the leading global players for interior and exterior components for automobiles has a presence in India by way of holding minority stake in Technico Industries Limited (Technico), a Haryana based leading Indian auto component player engaged into manufacturing of window regulators, seat sliders, hinges and other auto components.
Shiroki Corporation and Technico have today executed binding agreements allowing them to exit the current relationship and hiving off Seat & Window Regulator Business into a JV Shiroki Technico India Private Limited". The JV will be held 50%+1 by Shiroki and 50%-1 by Technico with an investment outlay of ~ INR 150 crores over the next two years.
The joint venture has been approved by the Board of both the companies and is expected to be operational in early 2015, after obtaining and subject to all necessary corporate, legal and regulatory approvals.
Mr. Arun Gupta, Managing Director, Technico Industries Limited commented on this development and said, We are Tier I to major OEMs, the new technology being introduced by Shiroki will help us achieve tremendous growth through new products for our customers. It will also help satisfy and cater quickly to the growing demand from other OEMs."
"The new JV Company is an important step for the Shiroki Corporation and represents strong intention of the Group to expand into the Indian market. We value our long term partnership with Technico and will continue to leverage our partnership to invest in product developments and innovations for markets both in India and around the world" said by the representative of Shiroki Corporation
As a result of this restructuring, both the Groups will focus on their respective core competencies to enhance the JV's competitiveness in times to come. Support for sheet metal related operations will be provided by Technico and Shiroki shall be providing latest technology and design support.
BMR Advisors acted as the transaction advisor to Shiroki and Global Advisors (Singapore) was the transaction advisor to Technico. BMR Legal acted as the legal advisor on the transaction.