NDR Auto approves Rs 62.96 crore Kia and Hyundai seat JV

NDR Auto Components Limited has approved a Rs 62.96 crore domestic joint venture with DYA Co., Limited to design, manufacture and supply passenger-car seats for Kia India and Hyundai India, with NDR Auto holding 51% and the venture expected to commence operations six to eight months after the agreement is signed.

What has NDR Auto approved with DYA?

NDR Auto has approved entering into a joint-venture agreement with DYA and forming an Indian joint-venture company for passenger-car seats. The planned company may be called NDR DYA Auto Components Private Limited, NDR DYA Private Limited, or another name approved by the Registrar of Companies, according to the filing.

The venture’s stated scope is the design, manufacture and supply of seats for the Kia and Hyundai range of vehicles in India. It is a domestic arrangement, and the disclosed end customers are Kia India Private Limited and Hyundai India rather than an export programme or a broader overseas supply mandate.

The board-approved project cost is Rs 62.96 crore, comprising Rs 38.11 crore of equity in one or more tranches and Rs 24.85 crore of loans. The initial equity investment in the proposed venture is Rs 10 crore, while its initial authorised share capital will also be Rs 10 crore.

How will NDR Auto control the new seat venture?

NDR Auto will own 51.0% of the proposed company, while DYA will own 49.0%, and that ownership split will be maintained across all capital-contribution tranches. The 51% holding means the proposed entity will become an NDR Auto subsidiary and will be consolidated in the company’s financial statements.

The five-member board will have three NDR Auto nominee directors and two DYA nominee directors. NDR Auto will nominate the chairman, although the filing specifies that the chairman will not have a casting vote on any matter, limiting the role of that position where votes are evenly divided.

The filing says the proposed subscription does not fall within related-party transaction rules at the time of investment. After NDR Auto invests, the company will become its subsidiary and therefore a related party; apart from NDR Auto’s proposed share capital holding, the promoter, promoter group and group companies have no disclosed interest in the new entity.

When could NDR Auto’s Kia and Hyundai seat business begin?

NDR Auto has indicated a six-to-eight-month period from signing the joint-venture agreement for completion of the transaction or commencement of operations. That timeline remains conditional on signing, incorporation and the steps specified in the disclosure, rather than representing an already operating seat-production facility.

The proposed venture requires incorporation approval from the Registrar of Companies. DYA’s foreign investment falls under the automatic route, with up to 100% foreign direct investment permitted in automotive components, while reporting under the Foreign Exchange Management Act, or FEMA, is to be completed after share allotment.

Competition Commission of India approval is stated to be not applicable. The filing does not disclose a plant location, proposed manufacturing capacity, employment target or projected turnover, so the Rs 62.96 crore initial project estimate is the principal disclosed scale measure for the proposed operation.

How does the Rs 62.96 crore commitment fit NDR Auto’s position?

The announced Rs 62.96 crore project cost compares with NDR Auto’s consolidated total assets of Rs 607.36 crore at September 30, 2026. Its total equity was Rs 384.49 crore at that date, up from Rs 357.72 crore at March 31, 2026, a rise of Rs 26.77 crore over the six-month period.

Cash and cash equivalents were Rs 5.05 crore at September 30, 2026, compared with Rs 15.10 crore at March 31, 2026. The filing separately reports a Rs 24.85 crore loan component within the joint-venture project cost, but it does not specify the lenders, interest rate, repayment schedule or how funding will be timed among equity and loan tranches.

For the six months ended September 30, 2026, NDR Auto reported net cash from operating activities of Rs 23.89 crore, compared with net cash used in operating activities of Rs 15.44 crore in the corresponding six months of 2025. Investing cash outflow was Rs 21.20 crore in the 2026 half year, including Rs 6 crore for purchase of equity investments in a joint venture, though the filing does not identify that cash-flow line as the proposed DYA venture.

The new venture adds a passenger-seat programme specifically linked to Kia India and Hyundai India to NDR Auto’s automotive-components activities. Its planned cost of Rs 62.96 crore is a separate forward project disclosure, whereas the September 2026 balance-sheet and cash-flow figures are reported consolidated financial measures and do not give future revenue or profit from the proposed business.

What remains undisclosed about NDR Auto’s seat joint venture?

NDR Auto has disclosed the 51.0%-49.0% ownership, five-director governance structure and Rs 62.96 crore project cost, but not the expected annual seat volumes, customer contract values or commercial start date. The stated six-to-eight-month period begins only after the agreement is signed, leaving the signing date and exact start date undisclosed.

The filing also does not state which Kia India or Hyundai India vehicle models will receive seats from the venture, whether supply nominations have been received, or the location of a plant. Those missing details matter because the venture’s stated rationale is limited to designing, manufacturing and supplying passenger-car seats in India for those two vehicle ranges.

Conclusion

NDR Auto’s board approval sets out a majority-controlled passenger-seat venture with Korean partner DYA, funded through a Rs 62.96 crore project structure of Rs 38.11 crore equity and Rs 24.85 crore loans. NDR Auto’s 51.0% ownership, three of five board nominees and consolidation treatment establish control, while DYA retains a 49.0% economic interest.

The next disclosed milestone is completion or commencement within six to eight months from signing the agreement, alongside Registrar of Companies incorporation and post-allotment FEMA reporting. Investors will need to watch for the final company name, signing date, funding tranches, production location, capacity, customer programmes and the timing of seat supplies to Kia India and Hyundai India.