Automotive components manufacturer Pricol Limited has announced an exclusive Joint-venture agreement with Advanced Driver Assistance Systems provider Zorg Industries (Hong Kong) to produce, supply and sell Parking Assistance Systems for the Indian market. Zorg will provide the technical expertise in sensing, vision technology and manufacturing process. Pricol will provide the infrastructure for the manufacture of Parking Assistance Systems as well as the support for sales and distribution across original equipment and aftermarket segment.
With an initial investment of $ One million and an initial production capacity of one million units, this joint-venture will lay the foundation for a long-term partnership. With an initial focus on the production of Parking Sensors, this Joint Venture will expand its scope to an advanced camera, sensing and display technologies. This joint-venture will be a subsidiary of Pricol limited with a shareholding of 60% and 40% from Pricol Limited and Zorg Industries respectively.
“With this long-term partnership, we believe both the companies will be able to participate in the growth of the Indian automotive market and ride the wave of safety regulation norms made mandatory by our government. The coming together of the robust state-of-the-art technology from the Zorg Industries and manufacturing excellence of Pricol will benefit the automotive sector in India and further strengthen our philosophy of frugal manufacturing together with process rigour,” Vikram Mohan, Managing Director, Pricol Limited.
As per the new safety norms enforced by the Government of India, Reverse Parking Sensors will become a mandatory feature for all passenger cars manufactured after July 2019 and this Joint Venture will help Pricol to be market ready to address this opportunity. The JV expects a revenue of around Rs 1,000 million by 2019-20 and it is expected to double in the next three years.
“Parking Assistance System is a rapidly expanding sector in the Indian automotive market and this joint venture leverages the strengths of both Pricol and Zorg to fulfil the market requirement for such systems. The venture will provide the Indian market with a complete tech, sales, manufacturing and support solution. Both our organisations have developed a strong working relationship and trust. I am pleased to be working together with Pricol and their talented team. We are very confident that our partnership will be a long-term success,” Todd Benoliel, Chief Executive Officer of Zorg Industries (Hong Kong) Limited.