Gabriel India to Invest Rs 27 Crore in Fasteners Joint Venture with South Korean Firm

Gabriel India Limited will invest Rs 26,82,84,100 (Rs 26.8 crore) to acquire a 51% stake in Jinhap Automotive India Private Limited (JAIPL), creating a joint venture with South Korean company Jinos Co., Ltd. to manufacture fasteners for automotive and industrial applications, the company announced following its board meeting on July 9, 2025.

The auto components manufacturer's board approved the investment that will make JAIPL a subsidiary of Gabriel India, with the South Korean partner holding the remaining 49% stake. The effective date for the share subscription agreement is July 10, 2025, according to a regulatory filing with the BSE and NSE.

Strategic Expansion into Fasteners

The joint venture represents Gabriel India's diversification into the fasteners category and aims to enhance business relationships with key original equipment manufacturers (OEMs) in the Indian market. JAIPL will undertake engineering, designing, developing, manufacturing, importing, exporting, assembling, marketing, sales and distribution of fasteners.

Under the collaboration, JAIPL will execute a technology license agreement with Jinhap Co., Ltd., an affiliate of Jinos and specialty fastener manufacturer. This partnership will provide JAIPL access to proprietary technology and technical know-how for manufacturing various fasteners.

Corporate Structure and Governance

The joint venture agreement establishes equal board representation for both partners, with Gabriel India appointing the chairperson who will have casting vote rights except on reserved matters. Jinos will appoint the chief executive officer, while voting rights will be proportional to shareholding.

Both parties will have standard protections including deadlock provisions, event of default clauses, and reserved matters requiring mutual approval, according to the regulatory disclosure.

JAIPL was incorporated on February 23, 2011, with an authorized share capital of Rs 8.06 crore divided into 80.6 lakh equity shares of Rs 10 face value each. The company has reported nil turnover for the past three financial years (2022-23, 2023-24, and 2024-25), with its FY 2024-25 financials currently under audit. As of March 31, 2025, JAIPL had a net worth of Rs 8 crore and total assets of Rs 8.04 crore.

The acquisition is expected to complete by October 31, 2025, or such later date as mutually agreed by all parties.