Pricol inks JV with Zorg Industries for parking assistance systems

Coimbatore-based Pricol Ltd has entered into another exclusive joint venture, this time with Hong Kong-based Zorg Industries for manufacture, supply and sale of parking assistance systems for the Indian market. The initial investment is Rs 6.5 crore.

As per the JV, Zorg will provide technical expertise in sensing, vision technology and manufacturing processes, while Pricol will provide the manufacturing infrastructure as well as sales and distribution support across the OE and aftermarket segments.

With new safety norms kicking in and Reverse Parking Sensors becoming a mandated norm for all passenger cars manufactured after July 2019, the JV will be able to capitalise on the demand.

The production capacity intiailly will be a million units, with initial focus on production of parking sensors. The JV partners aim to further expand the scope to manufacturing, supply and sales of advanced camera, sensing and display technologies. The venture aims to cater to all segments of the CV and PV segments in India including the aftermarket.

The JV will be set up as a subsidiary of Pricol with the domestic partner having a shareholding of 60 percent, while Zorg Industries will have 40 percent. The company expects a revenue of around Rs 100 crore by FY2019-20 and double it in the next three years.

Commenting on the JV, Vikram Mohan, MD, Pricol 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 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, said: “Parking assistance systems is a rapidly expanding sector in the Indian automotive market and this JV leverages the strengths of both Pricol and Zorg. 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.”

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