Pune-based Shivang Technocrats has struck a strategic alliance with Lareda Mekan AB of Sweden to manufacture a wide range of automotive products like pedal assemblies, fuel filler necks, sheet metal components, integrated seat frames.
In the first phase, Lareda Mekan will kick-start the alliance by creating an outsourcing channel to cater to the requirements of Lareda Mekan customers in India, Asia and Europe. In the second phase, the alliance partners will strike a joint venture (JV) offering its products to Indian, South Asian and European customers. The JV is proposed to commence within six months.
The alliance is projected to touch sales revenue of US$40 million (Rs 240 crore) in the next 5 years. In order to set up the collaboration, Lareda Mekan will set up an Indian subsidiary, wherein the envisaged investment over the next 5 years will be approximately US$20 million (Rs 120 crore). This figure could even double later.
The major focus of the alliance will be to develop and offer a broad portfolio of products to major automotive OEMs and other European players present in India and abroad as well. The alliance will carry out its manufacturing activities at Shivang Technocrats’ existing plant in Chakan.