Auburn Hills-based Joyson 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., a joint venture of JSS with Abhishek Industries, is being merged with Takata India Pvt. Ltd., which is a joint venture between JSS and ANAND Group. The new tri-party joint venture will be called Joyson ANAND Abhishek Safety Systems Private Ltd.
The merger of the two entities is subject to approval of the National Company Law Tribunal.
JSS is a leading global supplier of mobility safety systems including airbags, seatbelts, steering wheels, electronic safety systems and child restraints.
Under the terms of the new joint venture agreement, the new shareholding structure will be: JSS 65%, ANAND Group 30% and Abhishek Industries 5%.
The post-merger entity will have four manufacturing facilities in India: Neemrana, Rajasthan; Kancheepuram, Tamil Nadu; Manesar, Haryana and Pune, Maharashtra. The Manesar plant also houses a state-of-the-art R&D facility on par with any such facility globally. The tri-party joint venture is poised to become a leading supplier of safety-critical components such as airbags, seatbelts and steering wheels to all major OEMs in India and is projected to achieve a turnover of $143 million by 2023.
“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," Joyson Safety Systems CEO Guido Durrer said in a statement. "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."
Anjali Singh, executive chairperson of ANAND Group added: “ANAND Group has made substantial investments to increase its equity stake in the safety products business in this joint venture with JSS and Abhishek. 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.”
JSS has a global network of more than 50,000 employees in 25 countries and is majority owned by China’s Ningbo Joyson Electronic Corp.