Pricol Limited has recently announced an exclusive joint venture agreement with Zorg Industries (Hong Kong) Limited to manufacture, supply and sales of Parking Assistance Systems for the Indian market. In this joint venture, Zorg Industries, a global leader of Advanced Driver Assistance Systems, 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 OE and aftermarket segment.
Speaking on the occasion, Mr. Vikram Mohan, Managing Director, Pricol Limited said “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.”
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 JV will help Pricol to be market ready to address this opportunity.
Mr. Todd Benoliel, Chief Executive Officer of Zorg Industries (Hong Kong) Limited said: “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 organizations have developed a strong working relationship and trust. I am pleased to be working together with Pricol and its talented team. We are very confident that our partnership will be a long-term success”
With an initial investment of INR 6.5 crore (USD 1 Million) and an initial production capacity of 1 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 JV will expand its scope to advanced camera, sensing and display technologies. The product portfolio that will be made available through this Joint venture, will cater to all segments of the commercial and passenger vehicles in India including the aftermarket. The JV will be a subsidiary of Pricol limited with a shareholding of 60% and 40% from Pricol Limited and Zorg Industries respectively. It expects a revenue of around INR 100 crores (INR 1000 Million) by FY 19-20 and is expected to double in the next 3 years.