- Sansera Engineering has formed a joint venture with Japan’s Nichidai to make high-precision automotive components
- The Bengaluru-based JV will produce aluminium and steel parts for domestic and global markets
- Sansera will hold 60% stake, with Nichidai providing tooling and technical support
Sansera Engineering Limited has announced that it has entered into a joint venture agreement with Japan-based Nichidai Corporation to manufacture high-precision automotive components.
The partnership will help Sansera to expand its product range through the development of new forged and machined products which the company currently does not produce. The joint venture will produce precision components from aluminium and steel according to Sansera.
The parts will be used in essential automotive systems which include differential assemblies and compressors and driveline systems and other advanced automotive components.
The company will distribute its products to customers in both India and international markets which will help expand its global presence in the automotive supply chain.
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The joint venture will be operationalised through the incorporation of a new private limited company based in Bangalore, India. Sansera Engineering will possess 60% ownership of the joint venture according to the established ownership agreement while Nichidai Corporation will possess 40% ownership.
The proposed authorised equity share capital of the JV company will be ₹2 crore, with an initial paid-up capital of ₹2 lakh. The company will receive its needed financial resources through various funding rounds which will continue until the business reaches its full operational capacity.
The board of the joint venture company will consist of seven directors with Sansera nominating four directors and Nichidai nominating three directors. Sansera will choose the managing director who will lead the joint venture.
Nichidai will provide exclusive tooling supplies to the joint venture's India operations while delivering technical support through specifications and designs and manufacturing process assistance with certain exceptions in place. The shares of Sansera Engineering maintained their value at ₹1,669.9 per share.