Sandhar Technologies has announced that it has signed a joint venture agreement with Jinyoung Electro-Mechanics of Korea to set up a joint venture company – Jinyoung Sandhar Mechatronics – which will manufacture and market automotive parts in Chennai. The JV pact was signed in Changwon, South Korea on March 22, 2017.
Jinyong Sandhar Mechatronics will manufacture and supply audio AVN panel assemblies and switches from its Chennai plant. The joint venture has already bagged its first order from Hyundai Mobis in India. Hyundai Mobis, which was thus far importing these products, will now source high-quality products locally thereby saving time and optimising available resources.
Speaking on the new JV, Jayant Davar, founder, co-chairman and MD of Sandhar Technologies, said: “Sandhar and Jinyoung are taking their relationship to the next level with this 50-50 joint venture. Jinyoung Sandhar Mechatronics will set up its facility in Chennai and is likely to be operational by August 2017.”
Doo-Yung Kim, president, Jinyoung Electro-Mechanics (JEM), said that "India is a very large automotive market with a number of well-established Korean companies. The strengthening of our existing relationship with Sandhar through this joint venture gives us an opportunity to cater to Hyundai in India and expand our footprint as well.” JEM currently supplies to Hyundai Mobis in Korea.
How the JV partners stack up
Founded in 1985, the Sandhar Group is a fast-growing auto component major with over 6,500 employees, 34 manufacturing plants and subsidiary companies in Spain, Mexico and Poland. Sandhar manufactures lock kits, mirrors, handles, latches, hinges, stamped and tubular components, plastic injected components, zinc and aluminium pressure die castings, relays, fuel level senders, operator cabins, canopies, housings, panels, switchboards, control cabinets, molds, dies and structural parts for off-highway vehicles. It also supplies steel wheel rims and assemblies, handlebars, clutch and brake panels to two-wheeler manufacturers.
Jinyoung Electro-Mechanics, which was set up in 1996, specialises in automotive relays, switches, multi-functional switches, latches and buzzer units. It has three plants, a dedicated R&D Centre in South Korea, three plants in China and one in Mexico. It has technical tie-ups with Niles, Panasonic and Miyamoto of Japan for switches, PCB relays and horn relays, respectively.