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Thai automotive components manufacturer Aapico Hitech plans to increase its stake in its Indian joint venture Sakthi Global Auto Holdings Limited (SGAH) to 49.99% from 25.1%, according to reports in Thailand.

Stock Exchange of Thailand-listed Aapico Hitech plans to invest a total of US$65m in SGAH, including US$25m to buy an additional 24.9% stake in the Indian company.

A further US$40m will be made available in the form of a three-year loan with an interest rate of 10% per year.

Aapico Hitech makes a wide range of automotive body and chassis components, including stampings, forged and machined parts, plastic and steel fuel tanks as well as manufacturing equipment. It also owns Ford, Honda and Mitsubishi dealerships and is the sole distributor of Hyundai in Thailand.

The company reported an 11.8% sales rise in the first-half of 2018 to THB8.75bn (US$266m) and a 30.2% rise in net profits of THB702m.

SGAH is a diversified conglomerate with automotive interests including of forged, machined and cast parts, manufacturing equipment and vehicle dealerships in India.

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By GlobalData

Aapico Hitech originally made a US$100m investment in SGAH in 2017, includingUS$50m to buy its current 25.1% stake and US$50m in the form of a loan.

Aapico Hitech’s CEO Yeap Swee Chuan said his company has identified “a good opportunity to gain a stronger footprint in the global market through this investment”. The recent depreciation of the Indian rupee means it is also a good time to make this investment.

Aapico Hitech aims to expand its global reach and product range through this acquisition, while also increasing its management input in its Indian partner.