Sansera Engineering Limited announced on Thursday, January 29, that it has entered a joint venture agreement with Japan-based Nichidai Corporation to manufacture precision auto components. According to reports from CNBC TV18, the joint venture will focus on manufacturing precision forged and machined parts in aluminium and steel for differential assemblies, compressors, driveline systems and other advanced automotive components. The collaboration brings together Nichidai Corporation's 50 years of expertise in manufacturing dies, precision components, and filters developed across operations in Japan and Thailand, with Sansera's established presence in India's automotive sector. The products to be manufactured under the joint venture are not currently part of Sansera Engineering's existing manufacturing portfolio, with the components produced by the joint venture to be sold in domestic as well as overseas markets.
The joint venture will be operational via the incorporation of a new joint venture company in Bengaluru, India. As reported by CNBC TV18, Sansera will hold 60% stake in the JV firm while Nichidai will hold the remaining 40%. The proposed authorized equity share capital is ₹2 crore, while the initial paid-up capital will be ₹2 lakh, subject to further fund infusion in multiple tranches. This structure reflects a commitment to building a strong, domestically anchored enterprise aligned with the Government of India's vision of 'Make in India' and 'Atmanirbhar Bharat', while leveraging international expertise and technology transfer. The board of directors of the joint venture company will comprise seven members, with Sansera Engineering nominating four directors and Nichidai nominating three directors, while the managing director will be nominated by Sansera Engineering.
Under the agreement, Nichidai will exclusively supply tooling for the JV's India operations and provide technical know-how, designs, specifications and manufacturing process support, subject to certain exceptions. This collaboration creates a world-class manufacturing platform capable of serving both domestic and global markets, with the JV company operating as a private limited company to be incorporated in Bengaluru, Karnataka, India. The joint venture represents Sansera's expansion into precision auto component manufacturing, with the company focusing on parts that are not currently manufactured by Sansera, catering to both domestic and overseas markets.
The ownership of the joint venture will be split, with Sansera Engineering holding a 60% stake, and Nichidai Corporation owning the remaining 40%. The companies expect the joint venture to be operational within approximately 12 months from the announcement date. The initial authorized equity share capital for the joint venture is projected to be ₹200 million, with the investment to be made in one or more tranches by both Sansera and Nichidai. Sansera Engineering anticipates several key benefits from this joint venture, including diversification of product portfolio into new segments, access to new customer segments, including international markets, and strengthened competitive position in the automotive value chain.
Shares of Sansera Engineering were trading flat at ₹1,669.9 per share around 1 pm on Thursday, according to CNBC TV18. However, the stock rose 2% to touch a day's high of ₹1,707.30 following the joint venture announcement. At 3:15 PM, shares of Sansera Engineering were trading 1.30% higher at ₹1,692.50 on NSE. According to S Sekhar Vasan, Chairman & Managing Director of Sansera, the partnership is aligned with the company's vision to expand into high-value, technology agnostic automotive component segments and strengthen its position as a comprehensive solutions provider to the global automotive industry. Naoki Ito, President of Nichidai Corporation, stated that India represents one of the world's most dynamic automotive markets, with the company carefully evaluating opportunities to establish a meaningful presence in this important geography.
