The Hindu : Business : Minda forms venture with Valeo of France

Online edition of India's National Newspaper
Wednesday, Jul 25, 2007
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Minda forms venture with Valeo of France

Special Correspondent

Looking for acquisitions in Europe to enhance global presence

Forays into starter motors, alternators
Plant to be set up at Chakkan in Pune

— PHOTO: SANDEEP SAXENA

NEW INVESTMENT: Nirmal K. Minda (left), Managing Director, Minda Group, exchanging documents with Orazio Ragni, Vice-President, Valeo Electrical Systems, France, after signing the joint venture agreement in New Delhi on Tuesday.

NEW DELHI: Minda Industries, belonging to the NK Minda group, is on the look out for acquisitions to the tune of Rs. 200 crore in Europe to enhance its global presence and product portfolio.

A clear indication to this effect was given when the company announced its foray into starter motors and alternators for which it has formed a joint venture with Valeo Electrical Systems of France.

The joint venture, Valeo Minda Electrical Systems India Private Limited, will invest around Rs. 100-120 crore to set up the manufacturing facility at Chakan near Pune with an initial capacity to produce one million starters and alternators each.

The investment would be spread over four years with 10 per cent earmarked for research and development.

“Discussions are on with various firms in Europe which are related to our core and allied products. Since valuation is becoming an issue, it is taking time,” Minda Industries Managing Director, N. K. Minda, said while interacting with media persons after announcing the joint venture in which the Indian partner has 33.3 per cent stake while the remainder would rest with Valeo.

He said the value of the acquisition target could be up to Rs. 200 crore and the company was targeting firms operating in areas, including switches, horns and automotive lighting.

“Valeo- Minda will initially target the Indian passenger car market and eventually extend its offerings to other automotive segments,” Valeo Group Vice-President, Orazio Ragni, said.

The plant is expected to begin commercial production by March 2008.

“While initially we will only cater to the domestic market, the company also intends to start exporting in the next two years,” Mr. Minda said.

Valeo already has three other joint ventures with different partners in India. It is also on the look out for similar tie-ups with other Indian players.

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