Auburn Hills-based Joyson Safety Systems, a global supplier of mobility safety systems, announced the formation of a tri-party joint venture to merge its two joint ventures in India.
KSS Abhishek Safety Systems Private Ltd., which is a joint venture of Joyson with Abhishek Industries, is being merged with Takata India Pvt. Ltd., a joint venture between ANAND Group and Joyson. The new joint venture will be called Joyson ANAND Abhishek Safety Systems Private Ltd. The merger is subject to approval by the National Company Law Tribunal.
“This Joint Venture will become a platform for our safety products business to broaden our product offerings in India and increase our market share in one of the fastest growing automotive markets in the world,” says Guido Durrer, president and CEO of Joyson. “Bundling our world-class capabilities and strengths, we are well positioned to significantly enhance mobility safety in India and to further contribute to saving lives.”
Under the terms of the agreement, the new shareholding structure will give Joyson 65 percent, ANAND 30 percent, and Abhishek Industries 5 percent.
“ANAND Group has made substantial investments to increase its equity stake in the safety products business in this joint venture with JSS and Abhishek,” says Anjali Singh, executive chairperson of ANAND Group. “This move is a very strategic one for us, especially in light of the stringent safety norms which have come into effect for the automotive industry in India. With Joyson Safety Systems being a global leader in the auto safety parts business, the merger will help JAASS to offer state-of-the-art technology, the widest product range, and best service to all leading OEMs in India and thus to attain a leadership position.”
After the merger, the joint venture will have four manufacturing facilities in India. Its Manesar, Haryana plant also houses a research and development facility.
“The merger of the companies is a strategic initiative taken in the best interests of Indian customers, giving them access to the best design and quality in safety products,” says Dhiraj Dhar Gupta, chairman of Abhishek. “We look forward to continuing our relationship with our old and trusted partner Joyson while building on a new relationship with the ANAND Group.”
Joyson supplies airbags, seatbelts, steering wheels, electronic safety systems, and child restraints. ANAND was established in 1961 and is a manufacturer and supplier of automotive components in India. KSS Abhishek is an Indian automotive safety company that was founded in 1985.