Tata AutoComp Systems and Japan-based Ichikoh Industries will set up a joint venture to acquire Valeo’s lighting business in India.
The acquisition is aimed at boosting domestic manufacturing and bringing advanced automotive lighting technology to the Indian market.
The move reflects growing consolidation and strategic partnerships in India's automotive components industry.
Tata AutoComp Systems Ltd on Tuesday said it will form a joint venture with Japan's Ichikoh Industries Ltd to acquire Valeo's lighting business in India for an undisclosed sum.
Valeo's lighting business in India will be acquired through the acquisition of the Valeo Lighting Systems (VLS) business of Valeo India Pvt Ltd, together by Tata AutoComp Systems Ltd (TACO) and Ichikoh Industries Ltd (Ichikoh), a company listed on the Tokyo Stock Exchange Prime Market and 61.2% owned by Valeo, the company said in a statement.
"The acquisition would be consummated through a 50:50 joint venture company (JV) to be formed between TACO and Ichikoh Industries," it said.
Tata AutoComp Vice Chairman Arvind Goel said, "The formation of this joint venture would be another significant step by Tata AutoComp in offering contemporary products and technologies to automotive OEMs (original equipment manufacturers) in India.
"We are pleased to welcome Ichikoh and the Valeo Group as our partner, and together with their automotive lighting expertise, we will offer technologically superior and differentiated lighting solutions to our customers," Goel said.
Definitive agreements are in the process of being finalised between TACO and Ichikoh regarding the formation of the JV and the acquisition of the VLS Business and shall be subject to procurement of necessary statutory and regulatory approvals, the statement said.
The JV will cater to the automotive lighting market in India, it added.
Ichikoh Representative Director, President and CEO, Christophe Vilatte said, "Ichikoh, with more than 120 years of history of technological excellence, will join forces with new partner Tata AutoComp, strongly established with its reputational excellence. Capitalising on our respective strengths, we will be well-positioned to address the fast-growing automotive market in India."
