Chennai: Wheels India Ltd, a TVS Group company, on Friday said Japan-based Topy Industries would pick up a “minority stake" in its subsidiary firm, Wheels India Car Wheels Ltd, subject to regulatory approvals. Wheels India and Topy Industries Japan have reached an agreement regarding a “strategic partnership" in the passenger car steel wheels business.

As per the agreement, Topy Industries would acquire a 26% stake in Wheels India Car Wheels Ltd (WCWL), a wholly owned subsidiary of WIL, the company said on Friday.

The passenger car steel wheels business of Wheels India reported a turnover of ₹ 224.30 crore in FY 2017. “Share capital of WCWL is ₹ crore. Topy will invest ₹ 80-90 crore in the new company", Wheels India Ltd., Managing Director, Srivats Ram.

“The new company (that would be formed following the partnership) would have five member board comprising three from Wheels India, one from Topy Industries and one an Independent Director", he told reporters.

Stating that Wheels India has had a technical collaboration with Topy Industries for five years, he said, a “new greenfield factory in Gujarat would be set up under the partnership".

“This is likely to come up in 2018 with a capacity of around 1.5 million passenger car steel wheels", he said. “Wheels Cars Wheels Ltd will strengthen its overseas passenger car business through this partnership. This partnership will help drive growth in passenger car business".

Wheels India currently holds 43% market share in passenger car steel wheels category, he said.

Topy Industries Ltd with revenues of $2 billion is engaged in manufacturing of steel wheel for automobiles. It has production units in Japan, US, China and Mexico.

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