Chennai, Jun 16 (PTI) Wheels India Ltd, a TVS Group company, today said Japan-based Topy Industries would pick up a “minority stake” in its subsidiary firm, Wheels India Car Wheels Ltd, subject to regulatory approvals. Also Read - 'State Heading Towards Health Emergency', Gujarat HC Initiates Suo Motu PIL Over Corona Situation

Wheels India and Topy Industries Japan have reached an agreement regarding a “strategic partnership” in the passenger car steel wheels business. As per the agreement, Topy Industries would acquire a 26 per cent stake in Wheels India Car Wheels Ltd (WCWL), a wholly owned subsidiary of WIL, the company said today. Also Read - 'Tika Lagao, Beer Le Jao': This Gurgaon Restaurant is Offering Free Beer to People Who Show Their Vaccine Card

The passenger car steel wheels business of Wheels India reported a turnover of Rs 224.30 crore in FY 2017. Also Read - 'Vaccine Lagwao, Sona Le Jao': Women Get Gold Nose Pins For Taking COVID-19 Vaccine in This Gujarat City!

“Share capital of WCWL is Rs five crore. Topy will invest Rs 80-90 crore in the new company”, Wheels India Ltd., Managing Director, Srivats Ram.

“The new company (that would be formed following the partnership) would have five member board comprising three from Wheels India, one from Topy Industries and one an Independent Director”, he told reporters.

Stating that Wheels India has had a technical collaboration with Topy Industries for five years, he said, a “new greenfield factory in Gujarat would be set up under the partnership”.

“This is likely to come up in 2018 with a capacity of around 1.5 million passenger car steel wheels”, he said.

“Wheels Cars Wheels Ltd will strengthen its overseas passenger car business through this partnership. This partnership will help drive growth in passenger car business”.

Wheels India currently holds 43 per cent market share in passenger car steel wheels category, he said.

Topy Industries Ltd with revenues of USD 2 billion is engaged in manufacturing of steel wheel for automobiles. It has production units in Japan, US, China and Mexico.

This is published unedited from the PTI feed.