The joint venture company will make high precision pressed parts for auto and allied industries
DN Davar, chairman, Sandhar Technologies, Young Ku Cho, president, HSIMP, Jayant Davar, co-chairman & MD, Sandhar Technologies and Chung, TAE-In, minister, Embassy of the Republic of Korea.
Auto components major Sandhar Technologies Limited has signed a 50:50 joint venture with Han Sung International Module Press Company (HSIMP) based in Korea. The joint venture company will make high precision press parts, insert molded contact plates and switches.
Founded in 1984, HSIMP has three plants in Gyeonggi-do, South Korea specialising in the manufacture of components for relay switches, springs, brackets, terminals, switches and insert molded parts. Sandhar has established this JV keeping in mind the increasing trend of electronics in the auto industry. In addition, the group is keen to leverage the potential emerging in the consumer durable and electrical industries, which use terminals and high precision press components.
Speaking to Auto Components India, Jayant Davar, founder, co-chairman & managing director of Sandhar Group said the objective to establish the JV is to move up the value chain in the sheet metal business segment of the group. Moreover, the company feels that collaboration is a better option to expand business as the proprietary technology is not omnipresent. Also, it helps in expanding the customer base, he affirmed. Currently the group gets about half of its business from the auto industry, and the other half is shared between aerospace and appliances.
The JV company is setting up a plant at Sandhar’s relay manufacturing division in Gurgaon. While the JV company will be independently operating, it will later be moved to a separate location, and eventually be deployed across the country to cater to different customers in the auto, non-auto and aerospace segments. Currently the JV company will have 50 percent of its business from the Sandhar Group, with the rest to be developed outside. Going forward, the business from the group will reduce to five percent. “To start with we are planning to infuse a capital of $ 10 million, which will be increased to $ 30 million in three years,” Davar said.
Davar met Young Ku Cho, president, HSIMP, in May 2013 in China at an inaugural ceremony of a plant belonging to one of his joint venture partners. The agreement was inked within nine months and the new company will be headed by Du Young, president of HSIMP.
Young Ku Cho said the new company will initially look at catering to customers in India and at a later date think of exports to HSIMP. The first task for the company is to form a team, which will then be sent to HSIMP, Korea to get trained in manufacturing, while the plant in India is being readied.
Sandhar’s group companies include Sandhar Technologies Barcelona S.L, Spain, Sandhar Tooling Private Limited and two joint ventures in Indo Tooling Private Limited and Sandhar Caama Components Private Limited. Besides, it has a technical tie-up with Hondo Lock Manufacturing Company Limited, Japan for lock kits and mirrors. The group manufactures handles, latches, hinges, stamped and tubular components, plastic injected components, zinc and aluminium pressure die castings, molds and dies and structural parts for off highway vehicles. It has a separate vertical which focuses on supplies of steel wheel rims and assemblies, handle bars, clutch and brake panels to the two-wheeler manufacturers. It caters to several OEMs including Hero MotoCorp, Honda Cars, Tata Motors, TVS Motors, Ashok Leyland, GM, Mahindra, Toyota, Volvo Eicher, Piaggio, Yamaha and Suzuki Motorcycles. Besides, it also caters to Tier -1 companies including Autoliv, TRW, Bosch and Delphi. ACI
Story : T Murrali
