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Wheels India announces strategic pact with Topy Industries of Japan

Wheels India announces strategic pact with Topy Industries of Japan

Chennai, Jun 16 (UNI) Wheels India Limited (WIL) and the Japanese based Topy Industries Limited (Topy) today reached an agreement regarding a strategic partnership in the passenger car steel wheels business in India.

Under the pact, Topy would acquire a 26 per cent stake in WIL Car Wheels Limited (WCWL), which is a wholly-owned subsidiary of WIL.

'The investment will be made through new issue of equity shares by WCWL to Topy. Subject to relevant regulatory approvals, the transaction is expected to be completed in a few months', a WIL release here said.

WCWL was set up by WIL to carry on the passenger car steel wheel business in India.

WIL has entered into agreements to transfer its entire passenger car steel wheel business carried out at its plants in Padi in Chennai and at Bawal in Haryana, on a slump sale basis, to the new company.
With this transfer, WCWL will have a leadership position in the passenger car steel wheels segment, catering to all major automobile manufacturers in India as well as to the export segment, the release added.
The passenger car steel wheels business reported a turnover of Rs 224.30 crore in FY 2017.

It caters to major automotive players in India such as Maruti Suzuki, Hyundai and Ford and already has a leading market share in this segment.

Commenting on the strategic partnership, WIL Managing Director Srivats Ram said 'the partnership will combine the leadership position already established by Wheels India in the passenger car steel wheel segment in India, with the technology skills and global relationships of Topy.'

'With this tie up partnership, we are well positioned to build on the already strong platform that has been established by WIL. We believe that this partnership will put the business on a focused growth path and strengthen the existing relationship with Topy as a technology partner', he added.

Topy believes that this strategic partnership would help expand its global footprint, and not only provide a delivery platform for its OE customers across the globe, but also enable it to participate in the growing passenger car wheel segment in India. UNI GV CS 1633

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