New Delhi: Korea based auto parts maker Kwangsung Corporation has formed a joint venture with the Gurgaon-based Sandhar Technologies to manufacture plastic molded parts and accessories for the passenger and utility vehicles segment in India.
Under this JV, Kwangsung Corp will move the some of the manufacturing bases of its exiting product lines to India with an intention to make the country a nodal point of their exports.
I"We are currently making around 500 products in Korea for the auto industry. With our first global partnership with India we are expecting to produce all them here in coming years to cater to the markets of Europe and US" said Minsoo Sung, President and CEO, KwangSung Corporation on the sidelines of JV signing ceremony.
The manufacturing of the products will be done in two phases depending on the capital expenditure involved. Products such as glove boxes, Sun-Visors, Anti-chipping , Cargo screen, will be produced in phase I, starting 2019, as they require less capital investment, Sung added.
In the second phase the duo have plans to locally develop light wieghting material technologies for passenger cars and electric vehicle components.
"The new technologies of light wieghting material and electric vehicle that are most likely to be brough up in India like electric vehicles will develop over a period of time. With this JV Sandhar is to bring forth the manufacturing levels that are prevelent in Korea into India and continue to have the same quality standards at perhaps more comparative prices which makes a win-win situation for both the companies and customers" said Jayant Davar, co-chairman and managing director, Sandhar Technologies.
Commenting on the location of facility he added that at this point both of companies are zeroing in to south of India because it's the port for export.
On the revenue front, Davar is expecting that the independent unit will generate a revenue of Rs 350 crore in a couple of years.