Coimbatore, India, November 9, 2017
Pricol Limited, announced that it is entering into an exclusive joint venture with Zorg Industries Limited, a provider of advanced driver assistance system. As a leading manufacturer of automotive components and solutions provider for the global automotive market, Pricol aims to manufacture, supply and sales of parking assistance systems for the Indian market along with Zorg Industries, who will provide the technical expertise in sensing, vision technology and manufacturing process. Pricol will provide the infrastructure for the manufacture of parking assistance systems as well as the support for sales and distribution across original equipment and aftermarket segment.
As per the new safety norms enforced by the Government of India, reverse parking sensors will become a mandatory feature for all passenger cars manufactured after July 2019 and this JV will help Pricol to be market ready to address this opportunity.
With an initial investment of Rs 6.5 crores and an initial production capacity of one million units, this joint venture will focus on the production of parking sensors, and eventually will expand its scope to advanced camera, sensing and display technologies. The product portfolio that will be made available through the JV, will cater to all segments of the commercial and passenger vehicles in India including the aftermarket. Pricol will have a shareholding of 60 per cent, while Zorg Industries will have a 40 per cent stake of what is expected to grow into a long-term partnership. The expected revenue is placed at around Rs 100 crores by FY 2019-20 and it is expected to double in the next three years.
Speaking on the occasion, Vikram Mohan, MD, Pricol Limited said, “With this long-term partnership, we believe both the companies will be able to participate in the growth of the Indian automotive market and ride the wave of safety regulation norms made mandatory by our government. The coming together of the robust state-of-the-art technology from the Zorg Industries and manufacturing excellence of Pricol will benefit the automotive sector in India and further strengthen our philosophy of frugal manufacturing together with process rigour.”
Todd Benoliel, CEO, Zorg Industries (Hong Kong) Ltd said “Parking assistance system is a rapidly expanding sector in the Indian automotive market and this joint venture leverages the strengths of both Pricol and Zorg to fulfill the market requirement for such systems. The venture will provide the Indian market with a complete tech, sales, manufacturing and support solution. Both our organisations have developed a strong working relationship and trust. I am pleased to be working together with Pricol and their talented team. We are very confident that our partnership will be a long-term success.”