Schedule a Call Back
Anand Group enters in a joint venture with Korea’s HL Group
Industry News- Sep 15,23
This strategic partnership is set to double the size of the Indian conglomerate's aftermarket business while concurrently enhancing the Korean entity's presence within India.
The Anand Group, a prominent manufacturer of top-tier automotive systems and components with a value exceeding $2 billion, has entered into a joint venture (JV) agreement with Korea's HL Group, a conglomerate valued at $8.1 billion. This strategic partnership is set to double the size of the Indian conglomerate's aftermarket business while concurrently enhancing the Korean entity's presence within India.
Under the JV, the aftermarket portfolio will expand to include products produced through Anand's existing joint ventures with HL Group's Mando Corporation, a leading automotive components company based in Korea. These established partnerships include HL Mando Anand Automotive Pvt Ltd, which specialises in steering, brake, and suspension systems, as well as Anand Mando eMobility Pvt Ltd, dedicated to manufacturing motors and controllers for electric vehicles (EVs).
The collaborative endeavour will be named "HL Anand Automotive Parts Private Limited" and will offer a diverse range of aftermarket components catering to the passenger vehicle segment in both domestic and international markets. Over the next two years, the new company will establish two dedicated distribution centres.
The HL Group, headquartered in Seoul, encompasses 44 companies across various regions, including Asia, North America, Europe, the Middle East, and South America.
Mahendra Goyal, Co-COO of Anand Group, expressed, "At Anand, we prioritise our aftermarket business and aim to outpace market growth. This strategic JV with HL Group will substantially expand our aftermarket operations in both domestic and international markets. Leveraging Anand Group's robust aftermarket ecosystem in India and HL Group's sourcing expertise and well-established global network is the key."
He further added, "Through this collaboration, we anticipate a Compound Annual Growth Rate (CAGR) of 15% for our aftermarket business over the next five years. The company will concentrate on core products manufactured by existing JV entities and may explore additional product sourcing opportunities for growth. The JV will market products under both the HL MANDO and Anand co-brands, capitalising on the strengths of both partners."
Anand Group currently offers a diverse range of around 6,000 aftermarket products distributed through a network of over 2,500 industry-leading channel partners and nine distribution centers across India. The JV plans to introduce approximately 1,200 new product SKUs within the next two years.
Joon-Bom Kim, CEO of HL Holdings, who signed the agreement at Anand's New Delhi corporate headquarters, alongside Goyal, stated, "Anand Group is a highly respected leader in the Indian automotive industry. The collaboration between HL Group, a visionary industry leader in Korea with a significant global presence in automotive and other sectors, and Anand, with its extensive aftermarket network throughout India, promises mutual benefits and is poised to contribute to the growth of the thriving Indian aftermarket sector."
According to industry reports, India's automotive aftermarket, growing at a rate of approximately 10% annually, is estimated to be around Rs 85,000 crore ($10.6 billion), while the global aftermarket market is valued at approximately $408 billion.
Source: Economic Times
Automotive aftermarket
Anand Group
HL Group
joint venture
aftermarket components
India
international markets
automotive industry
strategic partnership
aftermarket expansion
automotive systems
Related Stories
Other Industrial Products
SKF India dedicates a song to mechanics
SKF India - a manufacturer of bearings, seals, lubrication and lubrication systems – has released "Heroes of the Road”, a heartfelt song dedicated to the unsung heroes of the automotive industry..
Read moreAutomation & Robotics
Robotics promises big productivity gains in auto industry: GlobalData
In a dynamic era of technological advancement, the automotive industry stands at the precipice of a revolution driven by robotics, as per GlobalData’s new research report, “Robotics in Automotiv..
Read moreElectrical & Electronics
Indian battery market in need of urgent active solutions
Despite active responses from domestic companies and strong interest from overseas manufacturers in the Indian market, issues related to domestic industry protection and the business environment rem..
Read moreRelated Products
Tata Motors unveils facilities for development of Hydrogen propulsion tech
AUTO COMPONENTS & ACCESSORIES
Tata Motors, India?s largest automobile company, unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. The unveilings constitute of Read more
Tata Motors plans petrol powertrain for Harrier and Safari SUVs
AUTO COMPONENTS & ACCESSORIES
Tata Motors is in the process of developing a new petrol powertrain for its premium sports utility vehicles, the Harrier and Safari, as confirmed by a senior company official. Currently, these models Read more
Electric Vehicle Charger
AUTO COMPONENTS & ACCESSORIES
RRT Electro is engaged in manufacturing of customized Power Electronic Products over two decades having capability to Design, Develop, Prototyping, Regulatory Compliance testing & Certification, Manuf Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
