Anand has entered into an agreement with Mando Corporation of Korea for the merger of the two joint venture companies partnered by the two groups – Mando India Ltd. and Mando Steering Systems India Ltd. The new company so formed will be known as Mando Automotive India Ltd. with a combined turnover of over Rs. 1,235 crores.
The agreement was formalised between Mr. Frank Chung, Executive Vice President, Corporate Planning, Mando Corporation, and Mr. Pravesh K. Srivastava, Group President – Excellence in Manufacturing & Education, Anand, at a signing ceremony held at the corporate headquarters of Anand at Hauz Khas, New Delhi, on February 20. The consolidated operations of the new company, employing around 9,000 people, are slated to commence in April.
The merger has been effected with a view to achieving marketing and purchase synergies, while serving as a single point source for key chassis components for customers of the two entities. The new company will be offering a product range covering brakes, suspension and steering systems. The merger is also expected to result in enhanced operational efficiencies while strengthening the overall organizational and financial structure.
Anand and Mando have been partners since 1997. Their first joint venture, Mando India Ltd., was set up to manufacture brakes in Chennai. It subsequently introduced suspension products in 2005. The company is presently a leading supplier of brakes and suspension products to passenger vehicle manufacturers in the country.
Anand recently entered into a second JV partnership with Mando Corporation, after having acquired a stake in Mando Steering Systems India Ltd. The collaboration was finalised at Seoul in October 2012. Targeting sales of Rs. 1 billion by 2016, the company manufactures state-of-the-art column-supported electric power steerings (C-EPS) at its facility in Chennai.
The merger of these two companies is expected to further strengthen the partnership between the two groups.
Provider of the widest range of solutions to the Indian automotive industry, Anand is among India’s leading manufacturers of automotive systems and components, making it the country’s leading OEM supplier. Anand has a major presence in the Indian aftermarket as well, with some of its major brands being market leaders. The group supplies to every major vehicle and engine manufacturer in the country.
Mando Corporation, South Korea’s second largest auto parts manufacturer, was set up in October 1962 for the manufacture of brake, steering and suspension systems, DAS / iron casting and electronics / electrification. An affiliate of South Korea’s Halla Group, the company runs 17 overseas plants with its footprint in Brazil, China, Germany, India, Japan, Korea, Malaysia, Poland, Turkey and the US.