A significant step in the component industry, Shiroki Corporation of Japan (an affiliate of Toyota Motor Corp) who is a leading manufacturer of interior and exterior component parts when it comes to automobiles has increased its share in Technico Industries Limited (Technico) by way of a joint venture. Technico is a Haryana based company that produces window regulators, seat sliders, hinges and other auto components.
The new arrangement has allowed Shiroki Corporation and Technico to renew their current relationship thereby enabling them to venture into hiving off Seat & Window Regulator Business giving rise to the name "Shiroki Technico India Private Limited". What it states is an investment of Rs 150 crores (over two years) being pumped into the JV with 51 percent shares held by Shiroki and 49 percent by Technico.
Speaking on the occasion, Arun Gupta, Managing Director, Technico Industries Limited said, “We are Tier I to major OEMs, the new technology being introduced by Shiroki will help us achieve tremendous growth through new products for our customers. It will also help satisfy and cater quickly to the growing demand from other OEMs.”
"The new JV Company is an important step for the Shiroki Corporation and represents strong intention of the Group to expand into the Indian market. We value our long term partnership with Technico and will continue to leverage our partnership to invest in product developments and innovations for markets both in India and around the world" commented a representative of Shirk Corporation
With this latest development and current level of restructuring, both groups would focus on their respective core competencies to enhance the JV’s competitiveness in times to come. As per the deal, support for sheet metal related operations would be provided by Technico while Shiroki shall be providing latest technology and design support.
As per Shiroki Technico India Private Limited, BMR Advisors acted as the transaction advisor to Shiroki whereas Global Advisors (Singapore) was the transaction advisor to Technico. BMR Legal also acted as the legal advisor on the transaction.
Source : CarDekho
