Minda Industries set to invest in TG Minda

Minda Industries is set to make an investment in TG Minda, which is 49.9 per cent joint venture between UNO MINDA and Toyoda Gosei, Japan (TG). The mentioned investment will be of Rs 33.5 crore and is expected to be completed by September 2020.

Minda Industries Limited (MIL) is a flagship company of UNO MINDA Group. The investment proceeds are intended to be used to consolidate the business of TG in India by transferring the shares of Toyoda Gosei South India Ltd (TG SIN) to TG Minda. The consolidation is expected to bring about several synergies such as optimal production system, flexible supply chain, complimentary product lines and customer synergies.

Currently, TG SIN is 95 per cent subsidiary of TG. TG SIN has business operations in exterior plastic molded components for automotive application. The company reported a turnover of Rs 377 crore for FY19.

UNO MINDA is considered to be one of the technology leaders in auto components industry as a leading supplier of proprietary automotive solutions to OEMs as Tier-1. It manufactures automobile components for original equipment manufacturers (OEMs).

On Wednesday, the stock of the company closed at Rs 231.55, down by 3.14 per cent or Rs 7.50 per share. The 52-week high is Rs 425.85 and 52-week low is Rs 209.30 on BSE.