INDIA: Anand signs merger agreement with Mando for JVs
Anand has entered into an agreement with Mando for the merger of the two joint venture companies partnered by the two groups, Mando India and Mando Steering Systems India. The new company will be known as Mando Automotive India, with a combined turnover of over INR12.35bn (US$226.86m).
The consolidated operations of the new company begin from April 2013, employing around 1,200 people. The merger is expected to deliver marketing and purchase synergies while serving as a single point source for key chassis components for customers of the two JVs. The new company will offer brakes, suspension and steering systems. The merger is also expected to result in enhanced operational efficiencies while strengthening the overall organisational and financial structure.
Anand, India and Mando, Korea have been partners since 1997. Their first joint venture, Mando India, was set up to manufacture brakes at Chennai, India and introduced suspension products in 2005. The company is an OEM supplier.
Anand recently entered into a second joint venture partnership with Mando after having acquired a stake in Mando Steering Systems India. The collaboration was finalised at Seoul, Korea in October 2012. The company manufactures column supported electric power steering (C-EPS), at its facility in Chennai, Tamil Nadu. The merger of these two companies is expected to further strengthen the partnership between the two groups.