Anand Group sets up new JV, merges two Joyson Safety Systems JVs
Joyson Anand Abhishek Safety Systems, the new JV, poised to become leading supplier of safety critical components such as airbags, seatbelts and steering wheels to OEMs in India; projected to achieve a turnover of Rs 1,000 crore by 2023.
Leading Tier 1 supplier Anand Group, in a measure to consolidat its presence in the Indian automotive safety systems industry, has announced the formation of a tri-party joint venture to merge the two JVs of Joyson Safety Systems (JSS) in India. KSS Abhishek Safety Systems (KSSA), a JSS JV with Abhishek Group, is being merged with Takata India (TIPL), a JV between the Anand Group and JSS. The new JV is to be called Joyson Anand Abhishek Safety Systems.
Under the terms of the new JV agreement, the Anand Group will increase its stake to 30 percent in the combined entity JAASS from its current holding of 25 percent in TIPL. The new shareholding structure of JAASS will be: JSS 65 percent, Anand Group 30 percent and Abhishek Group 5 percent.
Following the merger, JAASS will have four manufacturing facilities in India – one each at Neemrana, Rajasthan; Kancheepuram, Tamil Nadu; Manesar, Haryana and Pune, Maharashtra. The Manesar plant also houses a state-of-the-art R&D facility. JAASS is poised to become a leading supplier of safety critical components such as airbags (all types: driver, passenger, side, curtain), seatbelts (front and rear) and steering wheels to all major OEMs in India and is projected to achieve a turnover of Rs 1,000 crore by 2023.
“This joint venture will become a platform for our safety products business to broaden our product offerings in India and increase our market share in one of the fastest growing automotive markets in the world. Bundling our world-class capabilities and strengths, we are well positioned to significantly enhance mobility safety in India and to further contribute to saving lives,” said Guido Durrer, President and CEO of Joyson Safety Systems.
Anjali Singh, executive chairperson of the Anand Group, said, “The Anand Group has made substantial investments to increase its equity stake in the safety products business in this joint venture with JSS and Abhishek. This move is a very strategic one for us, especially in light of the stringent safety norms which have come into effect for the automotive industry in India. With Joyson Safety Systems being a global leader in the auto safety parts business, the merger will help JAASS to offer state-of-the art technology, widest product range and best service to all leading OEMs in India and thus to attain a leadership position.
“The merger of the companies is a strategic initiative taken in the best interests of Indian customers giving them access to the best design and quality in safety products. We look forward to continuing our relationship with our old and trusted partner Joyson while building on a new relationship with the Anand Group,” said Dhiraj Dhar Gupta, chairman, Abhishek Group.
Established in 1961, the Anand Group has 15 joint ventures and eight technical collaborations. The Group companies are spread across 58 locations and 12 states in India and has a workforce of 18,000 people. The Group also has a sizeable exports and aftermarket presence.
Joyson Safety Systems is a global leader in mobility safety providing safety-critical components, systems and technologies to automotive and non-automotive markets. Joyson Safety Systems is headquartered in Auburn Hills, Michigan, USA, with a global network of more than 50,000 employees in 25 countries. It is majority owned by Ningbo Joyson Electronic Corp., China.
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