A market leader in switches and horns segment, Minda Industries is seeing some spike up today, both in volumes as well as stock price – up 5.5% at Rs.624, with an intra day high at Rs.635. Its 52-week high stands at Rs.655.

This spike up in the auto ancillary stock price is a reaction to its announcement that it has got into a JV with Kosei group of Japan for making and supply of alloy wheels for passenger vehicles. In this JV, Kosei will own 30% stake and balance 70% by Minda group. To be located at Haryana, this project’s first phase will come up at a cost of Rs.200 crore and it is scheduled to go on stream by Feb 2016. Capacity is expected to be 60,000 units per month.

The market is betting on this new plant plus the ongoing expansions to benefit the company immensely when the auto sector bounces back. The company has a 61% share in domestic switches market and 47% in horns market. Its top clients include Bajaj Auto, TVS Motor, Honda and Maruti Suzuki.