ASK Au­to­mo­tive signs JV with Fras-le, Brazil

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The Rs 1463 crore ASK Au­to­mo­tive (P) Ltd., a man­u­fac­turer of fric­tion ma­te­ri­als and Fras-le S.A. (a Ran­don Com­pany), that makes fric­tion ma­te­rial with a rev­enue of more than $380 mil­lion (Rs 2528 crore) have signed an agree­ment to es­tab­lish a joint ven­ture in In­dia.

Ac­cord­ing to the agree­ment, the com­pa­nies plan to en­ter into a part­ner­ship to pro­duce brake pads and lin­ings for com­mer­cial ve­hi­cles to sup­ply the OEM and IAM mar­kets. The JV plans to in­vest more than Rs 100 crore over a pe­riod of 3 years and gen­er­ate an em­ploy­ment of more than 900 peo­ple.

Lo­cated in Mane­sar, Haryana, the new com­pany will op­er­ate un­der the name ASK Fras-le Fric­tion Pri­vate Lim­ited. The new com­pany’s prod­ucts will be supplied to In­dia, Bangladesh, Nepal and Sri Lanka and will also be ex­ported to other coun­tries through Fras-le global net­work al­ready serv­ing more than 100 coun­tries.

“The joint ven­ture will en­able cus­tomers to en­joy world class prod­ucts at com­pet­i­tive pric­ing. This is our con­tri­bu­tion to the ‘Make in In­dia’ vi­sion of the coun­try,” K Rathee, Chair­man and Man­ag­ing Di­rec­tor, ASK, said.

“I fore­see a great fu­ture for the joint ven­ture as it com­bines best-in class tech­nol­ogy with In­dia’s man­u­fac­tur­ing strengths,” added Aman Rathee, Pres­i­dent of ASK Au­to­mo­tive, Fric­tion divi­sion. “The mar­ket for com­mer­cial ve­hi­cles in In­dia is very large and shows ex­cel­lent prospects for fu­ture de­vel­op­ment. Frasle wishes to be part of this mar­ket, which is in line with our plans for growth and in­ter­na­tion­al­i­sa­tion,” the CEO of Fras-le, Sér­gio de Car­valho, said.

“Within our group, we have a long his­tory of par­tic­i­pat­ing in joint ven­tures and we be­lieve that this op­er­a­tion in In­dia will be very suc­cess­ful as well,” David Abramo Ran­don, Pres­i­dent of Ran­don Com­pa­nies, said.

The JV will al­low the com­pany to add pro­duc­tion ca­pac­ity and ver­sa­til­ity to the pro­duc­tion of brake pads and lin­ings for com­mer­cial ve­hi­cles (trail­ers, trucks and buses above 3.5 tonne), of­fer­ing cost im­prove­ment op­por­tu­ni­ties to the global struc­ture.

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