Pricol exits Denso JV on huge losses

COIMBATORE: With losses mounting, auto instruments manufacturer Pricol has exited its joint venture with Japanese partner Denso Corporation, when it sold its 49% stake in Denso Pricol India (DPIN) to Denso for a consideration of Rs 20 crore. DPIN has now become the wholly-owned subsidiary of Denso. "The JV was making huge losses. The business was not going as per plan," said Vikram Mohan, MD of Pricol.

DPIN, which had revenues of around Rs 70 crore in 2013-14, was supplying instrument clusters exclusively to Japanese carmakers Toyota, Honda and Suzuki.

The JV envisaged total buyout of Pricol by Denso in five years and involved transfer by Pricol, of its 'Denso Technology Instrument Cluster Undertaking' relating to four-wheeler personal passenger vehicles, situated at Coimbatore and Gurgaon to Pricol Components, a wholly-owned subsidiary of Pricol. Denso acquired 51% stake in Pricol Components after the transfer.