Tata AutoComp announced on Saturday it is exiting from its joint venture in wiring harness business. Tata Yazaki Autocomp Ltd was set up by Tatas and Yazaki Corporation of Japan in 1998 to manufacture wiring harness for automobile sector. The company has plants in Pune, Sanand, Pantnagar, Jamshedpur and Bangalore.
On Saturday, the company announced that its JV partner, Yazaki Corporation, will be acquiring its 50 percent stake in Tata Yazaki. The final transfer will take place after completion of all the formalities in a couple of months, the company said in a statement.
According to a report by rating agency CRISIL, last year Tata Yazaki is the second-largest manufacturer of wire harness in India, with a share of close to 16 per cent in the domestic market. Tata Motors contributes to around 46 per cent of Tata Yazaki’s revenues, with Toyota Kirloskar, Volkswagen, Fiat India and Honda Siel Cars Ltd together contributing about 50 per cent.
The company’s latest financial result is not known. But CRISIL report said for 2010-11 (based on provisional results), Tata Yazaki reported a net profit of Rs 16 crore on net revenues of Rs 507 crore crore as against a net profit of Rs 8.6 crore on net revenues of Rs 360 crore for 2009-10.
Yoshinami, India head of Yazaki Corporation said, “India is a growing market and it is now becoming an integrated part of our global strategy.” “Since the formation of the JV in 1998, Yazaki Corporation has been a very supportive partner and has brought cutting edge technology into the JV which has helped TYA grow to this position. As a Tata Group company, we respect their desire to now take control over the JV,” said Amitabha Mukhopadhya, president and Group CFO, Tata Autocomp Systems Ltd.
