Mumbai: Pune-based Shivang Technocrats today said it has entered into a strategic alliance with Swedish firm Lareda Mekan AB to manufacture a wide range of sophisticated automotive products.
The major focus of the tie-up will be to develop and offer a broad portfolio of quality products to major automotive OEMs and other European clients present in the country and abroad as well, a release said here. The new JV will serve the growing demand for automotive components domestically and globally. The automotive products that will be churned out by the JV, which is expected to commence in the next six months, including pedal assemblies, fuel filler necks, sheet metal components, integrated seat frames and the like, the release said.
The manufacturing of these and many other components will be carried out from Shivang Technocrats' existing plant at the Chakan automotive hub in Pune, it said. “This alliance will bring in a range of international technology, customers to Shivang Technocrats, which will boost the entire Mac Steel Group to emerge as a global leader,” Ranjeetsingh Rajput, Director of Shivang Technocrats said.
Lareda Mekan AB chairman, Lars Thunberg, said, “I look forward to launching the alliance to address South Asian and European customers and also plan to launch the joint venture with Shivang Technocrats to address the high quality requirements of European companies.” The alliance model is proposed to take shape in two phases. In the first phase, Lareda Mekan will kickstart the alliance by creating an outsourcing channel to cater to the requirements of its customers domestically, in Asia and Europe.
In the second phase, the collaboration will take off as a full-fledged joint venture, offering its products to Indian, South Asian and European customers, the release said. The alliance is projected to touch sales revenue of USD 40 million in next 5 years.