Shiroki Corporation and Technico Industries Ltd have entered into binding agreements allowing them to exit the current relationship and hive off their seat and window regulator business into a joint venture, Shiroki Technico India.
23 May 2014 | 8048 Views | By Shobha Mathur
Shiroki Corporation and Technico Industries Ltd have entered into binding agreements allowing them to exit the current relationship and hive off their seat and window regulator business into a joint venture, Shiroki Technico India. The JV will be held 51 percent (50 percent +1) by Shiroki and 49 percent (50 ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Shiroki Corporation and Technico Industries Ltd have entered into binding agreements allowing them to exit the current relationship and hive off their seat and window regulator business into a joint venture, Shiroki Technico India. The JV will be held 51 percent (50 percent +1) by Shiroki and 49 percent (50 percent -1) by Technico with an investment outlay of Rs 150 crore over the next two years. The JV has been approved by the Board of both the companies and is expected to be operational in early 2015.
Shiroki Corporation, an affiliate of Toyota Motor Corp and a leading player in interior and exterior components for automobiles, has a presence in India by way of holding a minority stake in Technico Industries (Technico), a Haryana-based auto component company engaged in manufacturing window regulators, seat sliders, hinges and other products.
Arun Gupta, MD, Technico, said, “We are a Tier 1 supplier 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 Shiroki Corporation and represents the 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 the Shiroki Corporation
Due to the restructuring, both the Groups will focus on their respective core competencies to enhance the JV’s competitiveness in future. Support for sheet metal-related operations will be provided by Technico and Shiroki would provide the latest technology and design support.