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Sansera-Nichidai JV to Boost Auto Parts Manufacturing, Shares Surge 6%

Sansera Engineering has entered a strategic joint venture with Japan's Nichidai Corporation to manufacture high-precision forged and machined automotive components. The partnership aims to diversify Sansera's portfolio, access new customer segments, and serve domestic and international markets. The JV, with Sansera holding a 60% stake, combines Nichidai's decades of precision engineering expertise with Sansera's Indian manufacturing base. The announcement propelled Sansera's shares up nearly 6% in intra-day trading.

Key Points: Sansera Forms JV with Japan's Nichidai, Shares Jump 6%

  • Diversifies portfolio beyond ICE components
  • Enables access to new global markets
  • Combines 50 years of Japanese precision expertise
  • Anchored in Make in India initiative
2 min read

Sansera Engineering forms JV with Japan's Nichidia; shares jump 6 pc

Sansera Engineering partners with Japan's Nichidai Corp in a strategic JV for high-precision auto components, driving shares up 6% and boosting Make in India.

"The joint venture marks an important milestone in the company's growth journey - S Sekhar Vasan"

New Delhi, Feb 3

Bengaluru-based precision-engineered components manufacturer Sansera Engineering Limited could strengthen its position in the automotive value chain and create additional revenue streams through its joint venture with Japan's Nichidai Corporation, a report has said.

The report from Machine Maker said the strategic joint venture will help Sansera diversify its portfolio beyond internal combustion engine components, access new customer segments and overseas markets.

Sansera Engineering Limited shares were trading at Rs 1,848.40 apiece, up Rs 104.50 or 5.99 per cent on an intra-day basis as of 3 pm.

The partnership is also expected to benefit technology transfer to India and generate skilled employment and contribute to Karnataka's industrial development, the report said.

The joint venture (JV) focuses on manufacture of high‑precision forged and machined aluminium and steel components for differential assemblies, compressors, driveline systems and other advanced automotive applications.

The joint venture will be established as a private limited company based in Bengaluru, in which, Sansera will hold a 60 per cent equity stake while Nichidai will hold 40 per cent share.

The new venture aims to serve domestic and international markets, with a domestically anchored ownership model aligned with Make in India and Atmanirbhar Bharat and benefitting from global manufacturing best practices, the report added.

The strategic JV combines Nichidai's five decades of expertise in precision dies, component manufacturing and filtration technologies with Sansera's manufacturing base and customer relationships in India.

"The joint venture marks an important milestone in the company's growth journey and aligns with its strategy to expand into high‑value, technology‑agnostic automotive components," said S Sekhar Vasan, Chairman & Managing Director, Sansera Engineering.

Access to Nichidai's Japanese precision engineering expertise would enable Sansera to deliver next-generation components to global OEMs, Vasan added.

India is one of the most attractive automotive manufacturing markets globally, Naoki Ito, President, Nichidai Corporation noted while commenting on the partnership.

- IANS

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Reader Comments

P
Priya S
The stock jump makes sense. Diversifying beyond ICE components is crucial for long-term survival with the EV shift. Access to Japanese precision engineering is a game-changer. Bullish on Sansera.
R
Rohit P
Good move, but let's be real. The real test is whether the technology transfer actually happens at the ground level or if it remains on paper. We've seen JVs before where the foreign partner keeps the core tech close. Hope this is different.
S
Sarah B
As someone in the auto component sector, this is a significant development. Nichidai's filtration tech expertise is top-notch. This could help Indian suppliers meet stricter global emission norms. Positive for the entire ancillary industry.
V
Vikram M
"Technology-agnostic automotive components" is the key phrase here. Smart strategy to not bet on just one powertrain future. This is how you build resilience. More Indian companies should think like this.
K
Karthik V
Hope the focus on skilled employment is genuine and leads to proper training programs, not just low-wage assembly jobs. We need to move up the value chain, and that requires investing in our engineers and technicians.

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