ASP Sealing Products Ltd., a leading manufacturer of EPDM weather-strips, has recently signed a joint venture agreement with Kaufil Sealing Technologies of Spain, under which Kaufil has acquired a share in ASP. Both the companies have agreed to set up a new 50:50 JV in India to manufacture sealing systems for supply to OEM customers. This includes investments in manufacturing facilities as well as design support in the Indian market.
Mr. Rishi Anand, Director – Marketing, ASP, said: “Kaufil is a global leader in sealing systems and is currently OEM to all global vehicle manufacturers, including Mercedes, Ford, GM, Nissan, Toyota, Renault, Volkswagen and many others. With all the major global vehicle manufacturers setting up business in India, it offers a huge opportunity for ASP and Kaufil to cater to their requirements in the Indian market and for their global requirements as well”.
The new JV, ASP Kaufil Private Ltd., will set up satellite plants in major automotive hubs like Pune and Chennai close to the OEMs to ensure ontime supplies. The JV is also looking at the possibilities of setting up manufacturing facilities in overseas markets like Thailand and Russia”, added Mr. Anand.
It’s a win-win situation for both the partners, as the new JV will provide ASP with access to latest technology which will help them serve global OEMs like Volkswagen, Ranault, Nissan which are setting up their business in India and other manufacturers like Mercedes, Ford, General Motors who have already established their business in India. For Kaufil, it provides access to emerging markets like India and helps them in going forward in its internationalisation process and its strategy to attend to global vehicle platforms. ASP will provide Kaufil with a strong platform for manufacturing, access to Indian and global OEMs and knowledge of the local market.
ASP currently has two manufacturing facilities in India. The main facility is in Uttar Pradesh and the second facility which was commenced a year back has been established in Uttaranchal. ASP is setting up a third facility in Pune, close to the General Motors plant in Talegaon. The company is also setting up a design centre and design studio which will be an R&D; centre and will help in future product development. The new facility in Pune will be operational by mid-2009.
ASP has been growing at a healthy rate of 40 per cent year on year. For the current year 2008-09 the company is targeting a turnover of Rs. 75 crores and in the next couple of years ASP is targeting a turnover of Rs. 150 to 200 crores, which will include business from the new JV as well, says Mr. Anand. ASP is also in the process of signing two more JVs in the area of hoses. Currently ASP supplies hoses to the industrial segment to companies like IOC, Nalco and Hindalco to name a few. ASP is certified for ISO/TS 16949:2002 certification.
