Gabriel India: Bolstering Market Position with New Fasteners Venture

Gabriel India Ltd (GIL), a leading supplier to the automotive components sector, has announced a significant stride in its diversification strategy through a joint venture (JV) with JINHAP Korea, an affiliate of JINOS. This strategic collaboration marks GIL's entry into the automotive and industrial fasteners business, a move poised to support the localisation efforts of original equipment manufacturer (OEM) customers. 

Under the agreement, Gabriel India will invest Rs 26.8 crore in cash to acquire a 51% stake in the newly formed entity, Jinhap Automotive India Private Limited (JAIPL), making it a subsidiary of GIL. The transaction is projected to conclude by October 2025.

The current market for imported fasteners in India is estimated to be substantial, valued at Rs 1,500 crore. The new JV aims for a revenue target of Rs 180-200 crore by calendar year 2030, with expectations of achieving double-digit EBITDA margins, the company informed in an investor call. 

The new facility planned for this venture will require a total capital expenditure (capex) of INR 60-70 crore, financed through a combination of equity and term loans. The plant is anticipated to commence operations within a year. In the initial phase, GIL intends to import fasteners valued at INR 100-120 crore to meet early demand and facilitate a smooth market entry before domestic production ramps up. 

JINHAP Korea, the joint venture partner, brings its global expertise to the table. Headquartered in Daejeon, South Korea, JINHAP was founded in 1978 and is recognized as a global player in automotive and industrial fastener technology and precision forged products. 

The company recorded a revenue of approximately 594 billion Korean Won (around USD 435 million) in calendar year 2024 and employs around 1,200 people, with manufacturing plants in South Korea, China, and the USA.