Aditya Auto Products, Edscha form joint venture

Aditya Auto Products & Engineering on Tuesday said it has signed a 50:50 joint venture agreement with international equipment supplier Edscha to tap the increasing domestic automotive systems market potential. The collaboration with Bengaluru-based Aditya Auto, the first venture for Edscha in India, is aimed at developing, manufacturing and distributing door checks, hinge systems, parking brakes, and latches, according to a release.

In addition to strengthening their competitive position, both companies expect new growth opportunities from the JV "Edscha Aditya Automotive Systems", it said.

A leading supplier of automotive products to most of the passenger and commercial vehicle makers in the domestic market, Aditya Auto has 10 manufacturing facilities spread across the country.

With this joint venture, the company gains greater access to the Indian market, enhancing its market position and the product portfolio, it said.

"The company's goal is to advance mobility by enhancing automotive safety, efficiency and comfort. With over 10 manufacturing plants in all key automotive hubs in India, this Joint Venture will enable the company to successfully bring new technologies to our customers in India," C Jayaraman, founder-Vice Chairman, Aditya Auto Products & Engineering Pvt Ltd, said.

Edscha is an experienced and strong partner and this partnership will enable and produce outstanding quality in high volumes, he said.

"Together with our capabilities, the new joint venture has all the prerequisites to operate successfully in the Indian market," Jayaraman added.

With its Chakan unit in Pune, the joint venture lays the groundwork for customer-focused and direct supply, especially to manufacturers of Indian cars, the company said, adding that the growing automotive market in India offers great scope of growth for both the companies, which will be developing products together, the release said.

Orders from customers in India have already been placed and are in the final stages of development, it added.

Currently, Edscha, which has been part of Gestamp since 2010, is represented in the Asian market with five locations, one each in Thailand and Korea and three in China, as per the release.

Gestamp, which has been present in the Indian market since 2008, has three plants -- two in Pune and one in Chennai besides a tech centre in Pune.

"With this step into the Indian subcontinent, we are closing a white spot in our global production network. We will now work intensively on this important growth market," said Cesar Pontvianne de la Maza, CEO at Edscha.

This includes not only driving forward the development of product applications that are specifically tailored to the needs of this market but also being able to manufacture them at market-driven prices in the future thanks to our local production facilities, he added. PTI IAS BAL BALDiscover everything about the automotive world at Times of India.