Auto component maker Anand Group on Tuesday said its unit Gabriel India has inked a technical collaboration with Netherlands-based Inalfa Roof Systems to manufacture sunroofs for the passenger vehicles.
The newly formed Inalfa Gabriel Sunroof Systems (IGSS), which will initially be a wholly-owned subsidiary of Gabriel India, will produce sunroofs at a new plant in Chennai with operations set to commence in the first quarter of 2024 with an investment of around Rs 170 crore.
The entities noted that the IGSS will be later converted into a joint venture with Inalfa holding 51 per cent shareholding.
IGSS will have an installed production capacity of 2 lakh units in the first phase with first line catering to South Korean automakers Hyundai and Kia.
"This partnership supports the government's AtmaNirbhar manufacturing drive; provides our OEM (Original Equipment Manufacturer) customers with a domestic and resilient supply chain for sunroofs," Anand Group Executive Chairperson Anjali Singh told reporters here.
The move also expands Gabriel's product range and will create over 250 direct and indirect jobs in India, she added.
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The new venture is expected to generate a revenue of around Rs 1,000 crore by 2030, Singh noted.
Anand Group has 21 companies out of which 13 are joint ventures. Gabriel India, the listed entity of the group, is a leader in the vehicle suspension systems in the domestic market.
Inalfa Group CEO Linda Gao said that the tie up with Gabriel is a great opportunity to enter into the growing automotive market in India.
Inalfa Roof Systems Group, with a USD 1.5 billion turnover, is a global market leader in the automotive sunroof systems with presence in 15 locations worldwide.
Demand for sunroof in passenger vehicles on the domestic market has grown at a fast clip in the last few years.
As per industry estimates, the automotive sunroof market in India could cross 7 lakh units this year against 5 lakh units in 2022.
Globally, the automotive sunroof market will reach USD 13.6 billion by 2030 with a CAGR (Compound Annual Growth Rate) of 9.3 per cent between 2010 and 2030.
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