Topy to ac­quire stake in Wheels In­dia arm

Auto components India - - NEWS - ACI

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.

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