Valeo enters in to new auto ancillary JV in India with Minda

24 July 2007

Valeo today announced that it has created a joint venture for the production of alternators and starter motors with Nirmal Minda-owned Rs830-crore N K Minda Group, a manufacturer of automotive systems in India.

The new company, called Valeo Minda Electrical Systems India Private Limited, will be 66.7 per cent owned by Valeo and 33.3 per cent by Minda.

Thierry Morin, chairman and CEO, Valeo, said, "This is the second joint venture we have created in India this year. Expanding our presence in India demonstrates our belief in the growth potential of this market and our willingness to support a fast-developing local automotive industry."

Earlier this year, Valeo announced the creation of a 50-50 joint venture with the Ashok Minda''s A K Minda Group, to develop, produce and sell Valeo Security Systems products in Pune. The Group also operates two other joint ventures in Chennai for the production of clutches and friction materials.

The new joint venture, to be located near Pune, will develop, produce and sell Valeo Electrical Systems products, including alternators and starter motors for passenger cars.

The total market for these products in India is currently estimated to be around 1.5 million units per year and is growing at an annual rate of around 9 per cent. The joint venture targets €50 million in sales by 2010.