The Hindu Business Line : Minda group, Valeo join hands

New Delhi June 1 Automotive component manufacturer AK Minda Group has announced a joint venture with the security systems division of the French company Valeo to set up a manufacturing facility at Pune.

As per the agreement, both the companies would have a 50:50 joint venture.

The newly formed company, Minda Valeo Security Systems Pvt Ltd, would have three directors each from Minda and Valeo on the company's board.

However, the financial controller and the research and development head would be from Valeo.

While both the companies did not reveal their investments, Mr Michel Serre, Vice-President, Valeo Security Systems, said: "The initial equity would be 5.7 million". He said that the joint venture would cover the entire range of products of Valeo Security Systems for four-wheelers, which includes central locking and remote control systems, electrical steering column locks, immobiliser systems and passive entry and start systems and power closure systems.

Mr Serre said that the facility would mainly cater to the domestic market and about 20-25 per cent would be for exports.

Mr Serre said that the company would also set up a product development and a technology centre here for the domestic market. It would be operational initially with a team of 12-15 people.

With this development, AK Minda Group said that it would be able to post annual sales of Rs 300 crore by 2010.

More Stories on : Alliances & Joint Ventures | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page