Sabo of Italy, a leading player in Europe in aftermarket shock absorbers with operations in over 85 countries, has entered India in a 50:50 JV with Hema Engineering Industries (HEIL) to manufacture shock absorbers in India. The Hema Group supplies swingarms, exhaust systems, main stand, side stand and handlebars to many Indian OEMs like HHML, TVS, Yamaha and Royal Enfield.
The two companies have set up a Rs 23 crore facility in Gurgaon. Sabo Hema Automotive has an installed capacity of 250,000 shock absorbers for commercial vehicles. According to Massimo Nuti, general manager, Sabo of Italy, “India is a very strong market for us. We are pleased to join hands with HEIL. This association with Hema will give us the desired start in the Indian region and a strong presence in India.”
Chandresh Jajoo, MD, Hema Engineering commented, “We believe that both companies are well positioned to manage the integration of systems, deliver international quality products and develop a brand image that can create value among CV manufacturers. The JV will prove to put forward safe and competitive offerings to both OEM and aftermarket customers.”
Jajoo added, “The commercial vehicle market in India is growing at a tremendous pace and to meet this demand, we plan to set up another manufacturing facility in Chennai. This facility will be operational by 2012. Based on our extensive marketing and operating activities, we aim to capture 25 percent of the components market in the CV segment.”