PPAP Automotive Limited has divested its entire 50 percent equity stake in PPAP Tokai India Rubber Private Limited (PTI) to Tokai Kogyo Co. Ltd. for a cash consideration of INR 1 billion. The transaction was concluded on 13 February 2026 pursuant to a settlement agreement effective from 1 January 2026.
According to a press release issued by PPAP Automotive Limited, the company received INR 1 billion from the sale and has fully exited the joint venture. PPAP had invested an aggregate of INR 485 million in PTI and, following the execution of the agreement, will have no further obligations, commitments, or liabilities towards the entity.
The proceeds from the divestment will be deployed toward reducing net debt and funding planned strategic capital expenditure. The joint venture was incorporated in 2012 as a 50:50 partnership for the manufacturing of EPDM rubber components and TPV glass run channels for the automotive industry.
PPAP stated that it is currently catering to customers’ requirements for rubber parts from its Greater Noida plant. Post exit from the joint venture, the company plans to undertake the EPDM rubber sealing system business at its Chennai facility from April 2026.
“This Joint Venture was incorporated in 2012. Over the years, this venture did not prove to be fruitful. The current divestment will be beneficial to the Company as it will enable the Company to reduce its debt and enable new investments enabling higher and sustainable growth,” said Ajay Kumar Jain, Chairman and Managing Director of PPAP Automotive Limited.
PPAP Automotive Limited is a manufacturer of automotive sealing systems and interior and exterior automotive parts in India. Established in 1978, the company operates manufacturing facilities across major passenger vehicle production hubs in North, West and South India and has its registered office in New Delhi.
