Pricol join hands with Zorg to make parking assistance systems
Pricol Limited, a leading manufacturer of automotive components and solutions provider for the global automotive market, has announced an exclusive Joint-venture agreement with Zorg Industries (Hong Kong) Limited to manufacture and supply Parking Assistance Systems for the Indian market.
In this joint venture, Zorg Industries, a global leader of Advanced Driver Assistance Systems, will provide technical expertise in sensing, vision technology and manufacturing process. Pricol will provide the infrastructure for the manufacture of Parking Assistance Systems and support their sales and distribution across OE and aftermarket segment.
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. With an initial investment of Rs 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 and the aftermarket in India. This joint-venture will be a subsidiary of Pricol Ltd with a shareholding of 60% and 40% from Pricol and Zorg Industries, respectively.
The joint venture expects a revenue of around Rs 100 crore by FY 19-20. It is expected to double in 3 years. 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. 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 rigorous process.”
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 organisations have developed 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 longterm success”
With over 40 years of expertise in the automotive components business, Pricol’s performance is driven by over 30 patents, 11 manufacturing units and 5 International business offices in India, Indonesia, Brazil, USA, Germany, Singapore, Thailand, Mexico, Czech Republic and Japan.
Zorg Industries, founded in 1998 as a solution provider through research & development, has grown to become a global leader in the development and manufacture of advanced slow manoeuvring safety solutions for all vehicle types. Zorg currently supplies Advanced Driver Assistance Systems (ADAS) globally to car manufacturers at both aftermarket and ODM/OEM levels. Zorg now has offices in Australia, USA, UK, Thailand, Japan, Hong Kong and China and has R&D and manufacturing facilities in China. Zorg products are distributed worldwide.
Siddharth Manoharan, Business Strategy, Pricol, Vikram Mohan, MD, Pricol, Todd Benoliel, CEO, Zorg Industries Limited, Sundararaman G, President, Pricol