Sansera Engineering Forms JV with Nichidai for Auto Components
Filing Summary
Sansera Engineering Limited has entered into a joint venture with Nichidai Corporation to manufacture precision automotive components. The new entity, to be based in Bengaluru, will focus on producing forged and machined parts in aluminum and steel. Sansera will hold a 60% stake, while Nichidai will own 40%. The initial authorized capital is set at INR 2 crore, with a paid-up capital of INR 2 lakh. The venture aims to leverage Sansera’s market presence and Nichidai’s technical expertise, targeting both domestic and international markets.
Sansera Engineering Limited has announced a joint venture with Nichidai Corporation to manufacture advanced automotive components. The collaboration will establish a private limited company in Bengaluru, India, focusing on precision forged and machined parts in aluminum and steel. These components will cater to differential assemblies, compressors, and driveline systems. The joint venture aims to expand Sansera’s product offerings to include items not currently manufactured by the company.
The financial structure of the joint venture involves an initial authorized equity share capital of INR 2 crore and a paid-up share capital of INR 2 lakh. Sansera will hold a 60% equity stake, while Nichidai will own 40%. The Board of Sansera has approved an investment of up to INR 500 million in the joint venture, which will be executed in one or more tranches. The venture will operate on a cash consideration basis.
The operational scope of the joint venture includes the manufacturing of precision components in aluminum and steel. These components will be used in differential assemblies, compressors, and driveline systems. Nichidai will supply the necessary tooling and technical know-how to the joint venture, ensuring the production of high-quality components. The joint venture will also explore new markets to expand its customer base, leveraging both companies’ existing networks.
The timeline for the joint venture’s establishment is projected to be within 12 months from the date of the announcement. The incorporation of the joint venture company is pending, with the name proposed as Nichidai Sansera Private Limited or another approved by the Central Registration Centre, MCA.
The joint venture will be governed by a Board comprising seven directors, with four nominated by Sansera and three by Nichidai. The Managing Director will be a nominee of Sansera. Nichidai will provide exclusive tooling and technical support, subject to certain exceptions, to facilitate the manufacturing process in India.
The joint venture aligns with the Government of India’s “Make in India” and “Atmanirbhar Bharat” initiatives, aiming to strengthen domestic manufacturing capabilities. It will enable Sansera to diversify its product portfolio and access new customer segments, both domestically and internationally. The venture will also create skilled employment opportunities and contribute to the economic development of Karnataka.
Nichidai Corporation specializes in manufacturing dies, precision components, and filters, with operations in Japan and Thailand. The company brings over 50 years of expertise to the joint venture, aiming to establish a significant presence in India’s automotive sector.
Sansera Engineering Limited is an integrated manufacturer of precision-engineered components for automotive and non-automotive sectors. The company focuses on producing critical components for engines, transmissions, and other systems, serving two-wheeler, passenger vehicle, and commercial vehicle markets. Sansera aims to expand its offerings and strengthen its position in the global automotive industry through strategic partnerships and technological advancements.