Topy to acquire stake in Wheels India arm
Wheels India, part of the TVS Group, has announced a strategic partnership with Topy Industries, Japan, for its passenger car steel wheels business in India. Topy will acquire 26% stake in Wheels India Cars Wheels (WCWL), a wholly- owned subsidiary of Wheels India. WCWL was set up by Wheels India to enter the passenger car steel wheel business in India.
The transaction will see its entire passenger steel wheel business carried out at its plants in Padi, Chennai and Bawal, Haryana, on a slump sale basis, to the new company. The transaction is expected to complete in a few months subject to regulatory approvals. The company reported a turnover of Rs 224.30 crore during 2016-17. WCWL supplies to Maruti Suzuki, Hyundai Motor India and Ford India among others.
“The strategic partnership will combine the leadership position already established by Wheels India in the passenger car steel wheel segment in India, with the technology skills and global leadership of Topy. With the strategic partnership, we are well positioned to build on the already strong platform that has been established by Wheels India. We believe that this partnership will put the business on a focused growth path and strengthen the existing relationship with Topy as a technology partner,” s Srivats Ram, MD, Wheels India, said.
Topy believes that this partnership will help it expand its global footprint and help participate in the growing passenger car wheel segment in India. Wheels India reported a turnover of Rs 2,176 crore in 2016-17, with a net profit of Rs 59.31 crore.