Sansera Engineering Limited will form a joint venture with Japan-based Nichidai Corporation to manufacture precision forged and machined automotive components in India. The proposed joint venture will focus on aluminium and steel components used in differential assemblies, compressors, driveline systems and other advanced automotive applications, with sales targeted at both domestic and overseas markets.
The board of Sansera approved the execution of a joint venture agreement on 29 January 2026. The partnership will be operationalised through the incorporation of a new private limited company in Bengaluru, Karnataka. The joint venture company will be named Nichidai Sansera Private Limited.
Under the proposed structure, Sansera will hold a 60 percent equity stake in the joint venture, while Nichidai will hold the remaining 40 percent. The board of the joint venture company will comprise seven directors, with four nominated by Sansera and three by Nichidai. The managing director will be nominated by Sansera. Nichidai will exclusively supply tooling for the business in India and provide technical know-how, specifications, designs, process information and manufacturing-related assistance, subject to specified exceptions.
The initial authorised equity share capital of the joint venture is proposed at INR 200 million, with an initial paid-up capital of INR 200,000 at the time of incorporation. Sansera’s board has approved an investment of up to INR 500 million in the joint venture company, to be made in one or more tranches. The acquisition will be undertaken through cash consideration, and the indicative time period for completion is up to 12 months from the date of disclosure, subject to mutual agreement between the partners.
The rationale for the joint venture is to leverage the existing customer relationships and sales networks of both partners and explore new markets to expand the customer base. The joint venture will manufacture components that are not currently produced by Sansera, enabling the company to broaden its manufacturing scope within the automotive components segment.
Sansera Engineering Limited, incorporated in 1981, manufactures precision forged and machined components for automotive and non-automotive sectors, supplying parts for engine, transmission, suspension, braking and chassis systems, as well as components for aerospace, off-road and agricultural applications.
