The JV, called Kosei Minda Aluminun, will be established in Chennai, India. It will engage in the development, manufacturing and sales of aluminium alloy wheels and precision aluminium die casting parts for major OE car manufacturers.
Production will starts in summer 2012 with a volume of 300k/y wheels. From 2014 it will increase to 600k/y wheels. The JV has a capital of INR500M ($11M) with an equity share of 60%-40% between Kosei and Minda.
The initial investment and the most important aspect of the JV is the availability of top Japanese technology in aluminium casting, which Kosei will infuse.
To cover market opportunities in India, the pair will form another JV on the outskirts of Gurgaon in Northern India. Minda will hold the majority share.