Wheels India (WIL) and Topy Industries (Topy), Japan have reached an agreement regarding a strategic partnership in the passenger car steel wheels business in India, whereby Topy will acquire a 26% stake in WIL Car Wheels (WCWL), a wholly-owned subsidiary of WIL. The investment will be made through new issue of equity shares by WCWL to Topy. Subject to relevant regulatory approvals, the transaction is expected to be completed in a few months.
WCWL was set up by Wheels India to carry on the passenger car steel wheel business in India. Wheels India has entered into agreements to transfer its entire passenger car steel wheel business carried out at its plants in Padi, Chennai, and Bawal, Haryana, on a slump sale basis, to the new company.
With this transfer, WCWL will have a leadership position in the passenger car steel wheels segment, catering to all major automobile manufacturers in India as well as to the export segment.
