Hema Engg and Verlicchi in JV for 2-wheeler parts

Verlicchi Hema Automotive will also cater to the needs of the European automotive market through Verlicchi. Verlicchi has expertise in manufacturing two-wheeler frames, rear forks, fuel tanks, main and side stands, handlebars and car chassis. It designs manufactures frames for leading motorcycle brands like Ducati, Yamaha Italia, Buell-Harley-Davidson, Honda Italia, Honda Japan and Aprilia and has manufacturing facilities in Italy, USA and Spain.

HEIL, currently a Rs 450 crore group, has been supplying performance critical auto components to major Indian OEMs like Hero Honda, TVS, Yamaha and Royal Enfield for over 25 years. The Group has eight manufacturing facilities across seven different locations in India and manufactures a wide range of components like swingarms, exhaust systems, main stand, side stand and handlebars.

Commenting on the occasion, Alessandro Verlicchi, managing director, Verlicchi Group, said: “The company’s plan to enter the Indian market constitutes a major step in its global growth strategy.” Equally important to our growth strategy is the Indian automobile industry, which is one of the world’s largest and fastest growing markets. This JV with HEIL will give us the desired start in the Indian region and a strong presence too."

Chandresh Jajoo, managing director, HEIL, said: “This collaboration will give HEIL access to cutting-edge technology to not only manufacture but also to design products like frames, exhaust systems and fuel tanks. As most OEMs manufacture products as per designs from customers and have no inputs in the product design, Verlicchi Hema Automotive will be an integrated solution provider and not just a component supplier.”

Detailing HEIL’s expansion plan, he added: “Phase I will involve setting up of a new state-of-the-art manufacturing facility in Hosur with a Rs 17 crore initial investment. The new joint venture has targeted a turnover of Rs 5 crore in the first year of operations.”