New Delhi: Auto component manufacturer NK Minda Group Thursday announced the formation of a joint venture (JV) with Japan's Tokai Rika to manufacture automotive seat belts, locks and immobilisers.

In the new entity, Tokai Rika Minda India Pvt Ltd, the Japanese firm will have 70 percent stake while the balance 30 percent will be held by Minda Group.

The new company will invest Rs.1 billion ($24 million) to set up a greenfield facility at Bangalore.

The company has already got a letter of intent from Toyota Kirloskar Motors Ltd for the supply of seat belts, locks and switches.

Minda Group chairman and managing director Nirmal K. Minda said: "This new JV with Tokai Rika cements an already existing relationship and marks another important milestone in our journey to become a recognised global player with emphasis on technology and development."

Tokai Rika president K. Kinoshita said: "We have strong ties with NK Minda Group from the past decade. The new JV will build upon our existing relationships with OEMs (original equipment manufacturers) and the trust that Minda brand enjoys in India."

Minda Group and Tokai Rika ave already set up another JV, Minda Rika Pvt Ltd (MRPL) that manufactures automotive switches for four-wheelers and mirrors.