UNO Minda, TACHI-S to enter JV for expansion of automotive seating system product offering; stock slips ~2%

30 Sep 2022 , 09:18 AM

Uno Minda Limited (formerly referred to as Minda Industries Limited announced that its Board of Directors has approved the formation of a Joint Venture agreement with TACHI-S Company Limited (TACHI-S), a global seat system creator headquartered in Tokyo, Japan, for the manufacture and marketing of seat recliners for four-wheeler passenger vehicles in India.

In the initial phase, the Joint Venture will provide a variety of items, including recliners, with the objective of extending into additional sitting mechanisms, seat frames, and entire sitting assemblies. Uno Minda will own 51% of the Joint Venture, with TACHI-S owning the other 49%.

TACHI-S, founded in 1954, is a fully integrated vehicle seat company (from development to production). They have 70 sites in 13 countries and supply goods and services to the world’s largest OEMs. For the fiscal year 2022, their combined revenue was 206 billion yen.

Uno Minda is already a market leader in two-wheeler and commercial vehicle seating solutions. The collaboration will assist Uno Minda to extend its seating systems product offering in 4W Passenger vehicles.

The Board has also approved an investment of up to Rs10 crore in the first phase for recliner product that has qualified for business from Indian OEMs.

At around 9.21 AM, Uno Minda was trading at Rs552.90 down by 1.75% from its previous closing of Rs562.75 on the BSE. The scrip opened at Rs556 and touched intraday high and low of Rs557 and Rs548.15 respectively.

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