Sansera Engineering Limited on Thursday, January 29, said it has entered a joint venture agreement with Japan-based Nichidai Corporation to manufacture precision auto components.The joint venture will manufacture precision forged and machined parts in aluminium and steel for differential assemblies, compressors, driveline and other advanced automotive components, that are not currently manufactured by Sansera, for sale in markets in India and overseas, the company said.
The JV is to be operational via the incorporation of a new joint venture company, it said. The two companies have agreed to incorporate, establish and operate the private limited company in Bengaluru, India to undertake the business. Sansera will hold 60% stake in the JV firm while Nichidai will hold the remaining 40%.
The proposed authorised equity share capital is ₹2 crore, while the initial paid-up capital will be ₹2 lakh, subject to further fund infusion in multiple tranches.The board of the JV company will comprise seven directors—four nominated by Sansera and three by Nichidai—with the managing director to be nominated by Sansera.
The JV is to be operational via the incorporation of a new joint venture company, it said. The two companies have agreed to incorporate, establish and operate the private limited company in Bengaluru, India to undertake the business. Sansera will hold 60% stake in the JV firm while Nichidai will hold the remaining 40%.
The proposed authorised equity share capital is ₹2 crore, while the initial paid-up capital will be ₹2 lakh, subject to further fund infusion in multiple tranches.The board of the JV company will comprise seven directors—four nominated by Sansera and three by Nichidai—with the managing director to be nominated by Sansera.
Under the agreement, Nichidai will exclusively supply tooling for the JV’s India operations and provide technical know-how, designs, specifications and manufacturing process support, subject to certain exceptions.
Shares of Sansera Engineering were trading flat at 1,669.9 apiece around 1 pm on Thursday.
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