Pricol Limited and Zorg Industries Signs Joint-Venture for the Manufacture and Supply
Coimbatore (India), November 08, 2017: Pricol Limited (BSE: 540293 / NSE: PRICOLLTD), a leading manufacturer of automotive components and solutions provider for the global automotive market, today announced an exclusive Joint-venture agreement with Zorg Industries (Hong Kong) Limited to manufacture, supply and sales of Parking Assistance Systems for the Indian market. In this joint venture, Zorg Industries, a global leader of Advanced Driver Assistance Systems, will provide the technical expertise in sensing, vision technology and manufacturing process. Pricol Limited will provide the infrastructure for the manufacture of Parking Assistance Systems as well as the support for sales and distribution across OE and aftermarket segment.
As per thenew safety norms enforced by the Government of India, Reverse Parking Sensorswill become a mandatory feature for all passenger cars manufactured after July2019 and this Joint Venture will help Pricol to be market ready to address thisopportunity.
With aninitial investment of INR 6.5 Crore (USD 1 Million) and an initial productioncapacity of 1 Million units, this joint-venture will lay the foundation for along-term partnership. With an initial focus on the production of ParkingSensors, this Joint Venture will expand its scope to advanced camera, sensingand display technologies. The product portfolio that will be made availablethrough this Joint-venture, will cater to all segments of the commercial andpassenger vehicles in India including the aftermarket. This joint-venture willbe a subsidiary of Pricol limited with a shareholding of 60% and 40% fromPricol Limited and Zorg Industries respectively.
The JointVenture expects a revenue of around INR 100 Crores (INR 1000 Million) byFY19-20 and it is expected to double in the next 3 years.
Speaking onthe occasion, Mr. Vikram Mohan, Managing Director – Pricol Limited said “Withthis long-term partnership, we believe both the companies will be able toparticipate in the growth of the Indian automotive market and ride the wave ofsafety regulation norms made mandatory by our government. The coming togetherof the robust state-of-the-art technology from the Zorg Industries andmanufacturing excellence of Pricol will benefit the automotive sector in Indiaand further strengthen our philosophy of frugal manufacturing together withprocess rigour.”
Mr.ToddBenoliel, Chief Executive Officer of Zorg Industries (Hong Kong) Limited said “ParkingAssistance System is a rapidly expanding sector in the Indian automotive marketand this joint venture leverages the strengths of both Pricol and Zorg to fulfilthe market requirement for such systems. The venture will provide the Indianmarket with a complete tech, sales, manufacturing and support solution. Bothourorganizations have developed a strong working relationship and trust. I ampleased to be working together with Pricol and their talented team. We are veryconfident that our partnership will be a long-term success”