Valeo today announced that it has created a joint venture for the production of alternators and starter motors with Nirmal Minda-owned Rs830-crore N K Minda Group, a manufacturer of automotive systems in India.

The new company, called Valeo Minda Electrical Systems India Private Limited, will be 66.7 per cent owned by Valeo and 33.3 per cent by Minda.

Thierry Morin, chairman and CEO, Valeo, said, "This is the second joint venture we have created in India this year. Expanding our presence in India demonstrates our belief in the growth potential of this market and our willingness to support a fast-developing local automotive industry."

Earlier this year, Valeo announced the creation of a 50-50 joint venture with the Ashok Minda''s A K Minda Group, to develop, produce and sell Valeo Security Systems products in Pune. The Group also operates two other joint ventures in Chennai for the production of clutches and friction materials.

The new joint venture, to be located near Pune, will develop, produce and sell Valeo Electrical Systems products, including alternators and starter motors for passenger cars.

The total market for these products in India is currently estimated to be around 1.5 million units per year and is growing at an annual rate of around 9 per cent. The joint venture targets €50 million in sales by 2010.

Nirmal K. Minda, group chairman, N K Minda Group, said, "N K Minda Group is very happy to announce its joint venture with Valeo, which is a leading global automotive supplier and renowned for its strong focus on quality and technology. We believe that this is the start of a long relationship that will enable us to better serve our OEM customers."

Valeo is an independent industrial group dedicated to the design, production and sale of components, integrated systems and modules for cars and trucks. It is one of the world''s leading automotive suppliers. The Group has 129 production sites, 68 R&D centers, 9 distribution platforms, and employs 69,800 people in 29 countries worldwide.