Topy Industries, Wheels India Ltd enter into strategic partnership
DSIJ Intelligence / 17 Jun 2017
On June 16,2017, Wheels India Ltd (WIL), promoted by TVS, and Topy Industries (a Japanese company specializing in steel, particularly automobile parts) have entered into an agreement for a strategic partnership in the passenger car steel wheels business in India.
On June 16,2017, Wheels India Ltd (WIL), promoted by TVS, and Topy Industries (a Japanese company specializing in steel, particularly automobile parts) have entered into an agreement for a strategic partnership in the passenger car steel wheels business in India. As per the deal, Topy Industries will acquire 26 per cent stake in WIL Car Wheels Ltd (WCWL), a wholly-owned subsidiary of Wheels India Ltd.
WCWL equity capital is Rs 5 crores whereas Wheels India Ltd’s share will be Rs 3.7 crores and the remaining share will be held by Topy.
Under the agreement, Wheels India Ltd will transfer its entire passenger car steel wheel business carried out at its plants in Padi in Chennai and Bawal in Haryana, to the new company on a slump sale basis.
In FY2017, the passenger car steel wheel business posted a turnover of Rs 224.30 crores.
Through this partnership, WCWL will strengthen its overseas passenger car business. It is expected by the company to come up with a capacity of around 1.5 million passenger car steel wheels in 2018.
On June 16,2017, Wheels India Ltd closed at Rs 1314.55, up by 2.70 per cent in comparison to its previous close of Rs 1280 on BSE. The scrip opened at Rs 1293.95 and has touched a high and low of Rs 1330 and Rs 1280.15 respectively.