Anand Group has announced the formation of a Tri-Party Joint Venture to merge the two Joint Ventures of Joyson Safety Systems ("JSS") in India. KSS Abhishek Safety Systems Private Limited ("KSSA") which is a Joint Venture of JSS with Abhishek Group is being merged with Takata India Pvt. Ltd ("TIPL"). TIPL is a Joint Venture between Anand Group and JSS. The new Tri Party Joint Venture will be called "Joyson Anand Abhishek Safety Systems Private Limited" ("JAASS"). The merger of the two entities is subject to approval of the National Company Law Tribunal (NCLT).
Under the terms of the new Joint Venture agreement, Anand Group will be increasing its stake to 30% in the combined entity JAASS from its current holding of 25% in TIPL. The new shareholding structure of JAASS will be: JSS 65%, Anand Group 30% and Abhishek Group 5%.
Post this merger, JAASS will have four manufacturing facilities in India- 1) Neemrana, Rajasthan; 2) Kancheepuram, Tamil Nadu; 3) Manesar, Haryana and 4) Pune, Maharashtra. Manesar plant also houses a state-of-the-art R&D facility on par with any such facility globally. JAASS is poised to become a leading supplier of safety-critical components such as airbags (all types- driver, passenger, side, curtain etc.), seat belts (front and rear) and steering wheels to all major OEMs in India and is projected to achieve a turnover of Rs. 1000 Crore by 2023.
"This Joint Venture will become a platform for our safety products business to broaden our product offerings in India and increase our market share in one of the fastest growing automotive markets in the world. Bundling our world-class capabilities and strengths, we are well positioned to significantly enhance mobility safety in India and to further contribute to saving lives." said Guido Durrer, President and CEO of Joyson Safety Systems.
Anjali Singh, Executive Chairperson of Anand Group, said, "Anand group has made substantial investments to increase its equity stake in the safety products business in this Joint Venture with JSS and Abhishek. This move is a very strategic one for us especially in light of the stringent safety norms which have come into effect for the automotive industry in India. With Joyson Safety Systems being a global leader in the auto safety parts business, the merger will help JAASS to offer state-of-the art technology, widest product range and best service to all leading OEMs in India and thus to attain a leadership position.
"The merger of the companies is a strategic initiative taken in the best interests of Indian customers giving them access to the best design and quality in safety products. We look forward to continuing our relationship with our old and trusted partner Joyson while building on a new relationship with the Anand Group" said Dhiraj Dhar Gupta, Chairman, Abhishek Group.
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