Minda Corporation Forms Joint Venture for Automotive Sunroof Solutions

On June 14, 2024, Minda Corporation signed a Joint Venture Agreement with HSIN CHONG MACHINERY WORKS CO., LTD (HCMF) under SEBI regulations. The agreement established a new entity manufacturing Automotive Sunroof Solutions and Closure Technology Products for passenger cars. Minda Corporation and HCMF will hold a 50% stake in the joint venture company.

The proposed joint venture’s initial authorised capital will be ₹831,000,000, divided into 83,100,000 equity shares of ₹10 each.

Scope Of Business Operation Of Agreement

The agreement aims to develop, manufacture, assemble, and sell Automotive Sunroof Solutions, Closure Technology Products, and related components for passenger cars.

Rationale And Benefit Expected

The collaboration between Minda Corporation and HCMF demonstrates their commitment to Atmanirbhar Bharat by offering comprehensive system solutions, including product design, development, and manufacturing for passenger vehicles. Spark Minda aims to expand its offerings in the four-wheeler segment, enhancing customer value through advanced technology products.

With India’s growing market demand for sunroofs driven by evolving consumer preferences and premiumisation, partnering with HCMF, a global leader in automotive sunroof and closure systems, will enable us to introduce advanced technologies and increase content per vehicle in the vehicle access space.

This partnership leverages the complementary strengths of both organisations, establishing a robust presence in India’s rapidly expanding sunroof and closure systems market.

Upon announcing the collaboration, Mr. Ashok Minda, Chairman and Group CEO of Minda Corporation, stated, “We are delighted to announce the signing of a Joint Venture Agreement with HCMF, a partnership that will pave the way for smart mobility solutions. This collaboration underscores our commitment to Atamnirbhar Bharat as we strive to deliver comprehensive system solutions encompassing product design, development, and manufacturing for passenger vehicles. Furthermore, Spark Minda is committed to expanding our four-wheeler segment offerings by enhancing kit value and ensuring greater customer benefits. We continuously endeavour to introduce advanced technology products to drive our next growth phase.”

About Minda Corporation

Minda Corporation is a prominent Indian automotive component manufacturer established in 1985. It operates extensively across India and internationally as a critical entity within Spark Minda.

On June 14, 2024, Minda Corporation Limited’s share price opened at ₹452.00 and closed at ₹456.00 on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.