Spark Minda and Furukawa announce change in shareholding at Minda Furukawa Electric Private Ltd. of India
- Expanding Automotive Business in India -
Furukawa Electric Co., Ltd. and Furukawa Automotive Systems Inc. (Koura-cho, Inukami-gun, Shiga) (collectively “Furukawa Electric Group”) and Spark Minda, Ashok Minda Group announce signing of an Agreement for increase in equity stake by Furukawa Electric Company Ltd. in Minda Furukawa Electric Pvt. Ltd., Bawal, India.
Minda Furukawa Electric Private Ltd. is a Joint Venture company of Spark Minda, Ashok Minda Group, an Indian Automotive Component Manufacturer. After the increase in equity Furukawa Electric Group will raise its stake from 49% to 75% thus acquiring the management control of Minda Furukawa Electric Private Ltd. Spark Minda, Ashok Minda Group shall continue to hold 25% stake and remain a joint venture partner.
Furukawa Electric Group intends to establish the management foundation forthwith under the initiative taken by this group and will expand automotive business in India.
Globally, electrification of the automobile is progressing, especially in India, raising the ratio of electric vehicle in its automobile market up to 30% by 2030.
Minda Furukawa Electric Private Ltd. has been established by Furukawa Electric Group and Spark Minda Ashok Minda Group in 2007, for the purpose of manufacturing and sales of Wiring Harness and other automotive components to Japanese Automotive Makers located in India.
Following our business strategy taking actions toward the Indian governmental policy of the electrification, Furukawa Electric Group aims for the initiative in Indian automobile market by acquiring the management control of Minda Furukawa Electric Private Ltd. Further, Our Group with the continuous support from Spark Minda Ashok Minda Group will lead Minda Furukawa Electric Private Ltd. to improve QCDDM(note 1) and expand the business in the growing Indian market.
Post the change in shareholding, the joint venture relationship between Furukawa Electric Group and Spark Minda Group shall continue.
With the acquisition, the corporate name of Minda Furukawa Electric Private Ltd. will be changed into Furukawa Minda Electric Private Ltd.
(note 1)QCDDM is an abbreviation for the quality, cost, delivery, development and management that are required by automobile manufacturers from their suppliers.
Minda Furukawa Electric Private Ltd.- Proposed structure
|Corporate Name||Furukawa Minda Electric Private Ltd.|
|Main Plant||Haryana, Bawal, India|
|Investment Ratio|| Furukawa Electric Group 75%
(Furukawa Electric Co., Ltd. 45%, Furukawa Automotive Systems Inc. 30%)
Spark Minda Ashok Minda Group Group 25%
|Director||Three from Furukawa Electric Group and one from Spark Minda Ashok Minda Group|
|Capital||INR 1,175 million (Approximately JPY 1.8 billion)|
|Number of Employees||Approximately 2,200|
Profile of Spark Minda Group
|Head Office||Gurugram , India|
|Chairman and Group & CEO||Mr. Ashok Minda|
|Sales||~US $645 Million|
|Business||Mechatronics, Electrical & Electronics, Plastics & Interiors apart from other automotive solutions catering to the leading Passenger Vehicle, Commercial Vehicle, Motorcycle & Scooter, Off-road Vehicle & Tier 1 Manufacturers in India with presence in Germany, Poland, Czech Republic, Mexico, Indonesia, Vietnam, Uzbekistan and Japan.|
About Furukawa Electric Group
Furukawa Electric (TSE; 5801, ISIN; JP3827200001) Group started business in 1884, when its copper-smelting facility and wire manufacturing factory was established. Since then Furukawa Electric has become pioneers in the latest technologies by addressing diverse technological issues. Furukawa Electric has released products in a number of areas, including telecommunications, electronics, automobiles, and construction, with the three types of materials it works with at their core, namely, optics, plastics, and metals. Many of these products have attained the top global market share, and all of its products have contributed to society in numerous business areas. Furukawa Electric reported consolidated revenues of JPY 967.3 billion (approximately USD 8.7B) for the fiscal year ended March 31, 2018.