New Delhi, June 5: Leading automotive components maker ANAND Group on Tuesday announced that it has formed a Tri-Party Joint Venture to merge the two Joint Ventures of Joyson Safety Systems (JSS) in India.
KSS Abhishek Safety Systems Private Limited (KSSA) which is a Joint Venture of JSS with Abhishek Group is being merged with Takata India Pvt Ltd (TIPL). TIPL is a Joint Venture between ANAND Group and JSS.
The new Tri Party Joint Venture will be called Joyson ANAND Abhishek Safety Systems Private Limited (JAASS). The merger of the two entities is subject to approval of the National Company Law Tribunal (NCLT).
Under the terms of the new Joint Venture agreement, ANAND Group will be increasing its stake to 30 per cent in the combined entity JAASS from its current holding of 25 per cent in TIPL.
The new shareholding structure of JAASS will be like JSS 65 per cent, ANAND Group 30 per cent and Abhishek Group five per cent.
Anjali Singh, Executive Chairperson of ANAND Group, said, "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, widest product range and best service to all leading OEMs in India and thus to attain a leadership position, She added.
"We look forward to continuing our relationship with our old and trusted partner Joyson while building on a new relationship with the ANAND Group," said Dhiraj Dhar Gupta, Chairman, Abhishek Group. (UNI)