TVS Group announced that Japan-based Topy Industries would pick up a “minority stake” in its subsidiary firm. They have signed an agreement regarding “strategic partnership” in the passenger car steel wheels business. According to the agreement, Japan company will acquire 26% stake in Wheels India Car Wheels Ltd (WCWL), a wholly owned subsidiary of WIL.
In financial 2017 the wheels business of Wheels India reported a turnover of Rs 224.30 crore.
Srivats Ram, Managing Director of Wheels India said, “Share capital of WCWL is Rs five crore. Topy will invest Rs 80-90 crore in the new company”. While he also added, “The new company (that would be formed following the partnership) would have the five-member board comprising three from Wheels India, one from Topy Industries and one an Independent Director”.
The Wheels India has made technical collaboration with Top Industries for five years. A new greenfield factory will be set up in Gujarat under this partnership. This partnership will strengthen the company’s overseas passenger car business.
Wheels India currently holds 43 per cent market share in passenger car steel wheels category while Topy Industries Ltd with revenues of USD 2 billion is engaged in manufacturing of steel wheel for automobiles.