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Home arrow Business News arrow NK Minda Group announces JV with Valeo, France
NK Minda Group announces JV with Valeo, France Print E-mail
Written by Arjun   
Thursday, 26 July 2007
NEW DELHI: The Rs.832 crore auto component manufacturer, NK Minda Group, announced its Joint Venture Agreement with Valeo Electrical Systems (a 1085 M € company) of France. The venture is setting up a new plant at Pune to manufacture starter motors and alternators.

The new entity to be christened Valeo Minda Electrical Systems India Private Limited (VMESPL) will manufacture starter motors and alternators for cars. The JV agreement envisages that 66.7% equity will be held by Valeo and 33.3 % equity will be held by NK Minda Group.

The new company is investing around  Rs.100 to 120 crore at Pune. This investment will be spread over 4 years and around 10 % of the total amount is earmarked for setting up an R&D lab at the new facility. The commercial production is likely to commence at Chakan in March 2008. "We were looking for opportunities to enter into new segments in auto components in line with our core competency of manufacturing quality electrical components. Our foray into starter motors and alternators is part of our commitment to bring forth value added propositions and quality electrical components to our OEM customers", says Mr. Nirmal K Minda, Managing Director, NK Minda Group.

On the occasion of the signing of the JV with Valeo Electrical Systems, Mr. Minda said, "NK Minda Group is very happy to announce its JV with Valeo, which is the leading automotive supplier across the globe and known for its twin focus on quality and technology. We also believe that this is just the auspicious start to a long relationship and together we will serve our OEM customers better"

Thierry Morin, Valeo Chairman & CEO, said, "India is growing and modernizing at a rapid pace, creating great opportunities for global and local car makers as well as automotive suppliers. Valeo already operates three joint ventures in India and will continue to expand its presence in the country."

The total OEM market for cars and MUV's is currently slated to be 1.5 million starters and 1.5 million alternators respectively. This is growing at a rate of around 9 %.

VMESPL expects to achieve revenues of Rs. 275 crores ( 50 Million Euro) by the end of 2010. It will be focusing on manufacturing starter motors and alternators for passenger cars initially and after consolidation in the sector will look at HCV, LCV & 2-3 wheeler segments going forward.
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