Minda Industries Gains on New Joint Venture

Shares in Minda Industries surged over 6 per cent to an intraday high of Rs 635 on Friday after the company inked a joint venture pact with a Japanese company.

Minda Industries, which manufactures auto components has made a joint venture with Japan's Kosei Aluminum Co to manufacture and sell alloy wheels in the country.

The joint venture firm will be named as Minda Kosei Aluminum Wheel and will be set up in Bawal, Haryana with a total investment of Rs 200 crore for first phase of production.

Minda Industries will make equity contribution of 70 per cent in the JV while, Kosei Aluminum Co will make an equity contribution of 30 per cent.

Minda Industries commands 61 per cent share in domestic switches market and 47 per cent in horns market. Its top clients include Bajaj Auto, TVS Motor, Honda and Maruti Suzuki.

Shares in Minda Industries closed 2.5 per cent per cent higher at Rs 612 apiece, outperforming the broader Nifty, which ended with 1.85 per cent gains.