Pricol Limited and Zorg Industries Signs Joint-Venture
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 the newsafety norms enforced by the Government of India, Reverse Parking Sensors willbecome a mandatory feature for all passenger cars manufactured after July 2019and this Joint Venture will help Pricol to be market ready to address thisopportunity.
With an initialinvestment of INR 6.5 Crore (USD 1 Million) and an initial production capacityof 1 Million units, this joint-venture will lay the foundation for a long-termpartnership. With an initial focus on the production of Parking Sensors, thisJoint Venture will expand its scope to advanced camera, sensing anddisplay technologies. The product portfolio that will be made available throughthis Joint-venture, will cater to all segments of the commercial and passengervehicles in India including the aftermarket. This joint-venture will be asubsidiary of Pricol limited with a shareholding of 60% and 40% fromPricol Limited and Zorg Industries respectively.
The Joint Ventureexpects a revenue of around INR 100 Crores (INR 1000 Million) by FY 19-20 andit is expected to double in the next 3 years.
Speaking on the occasion, Mr. Vikram Mohan, Managing Director – PricolLimited 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 togetherwith process rigour.”
Mr. Todd Benoliel, Chief Executive Officer of Zorg Industries(Hong Kong) Limited said “Parking Assistance System is a rapidly expanding sector in the Indianautomotive market and this joint venture leverages the strengths of both Pricoland Zorg to fulfil the market requirement for such systems. The venture willprovide the Indian market with a complete tech, sales, manufacturing andsupport solution. Both our organizations have developed a strong workingrelationship and trust. I am pleased to be working together with Pricol andtheir talented team. We are very confident that our partnership will be along-term success”