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| Wallstabe & Schneider, Divekar JV to shift base to Vadodara |
| Ravi Menon / Mumbai/ Bangalore Mar 18, 2010, 00:23 IST |
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German automotive components company Wallstabe & Schneider has established its Indian presence by signing a joint venture (JV) agreement with Thane-based Mecnam Products and Mumbai-based Deshmukh Rubber Works, both owned by the Divekar Group.
The JV company, Divekar Wallstabe & Schneider Precision Seals Ltd, will be based in Vadodara and manufacture O-Rings, precision seals and bonded rubber components for a predominantly automotive customer base, Divekar Group director Chaitanya Divekar said.
The JV, to be located 80 km north of Vadodara, will absorb investments of upto Rs 10 crore over the next two years. Both partners will hold 50 per cent stake in the joint venture and equally share seats on the board of directors.
The JV is expected to start full operations from next month with about 80 employees on its floors. An additional corporate office is planned to be located in Thane, he said.
The company has transitioned the existing operations of Mecnam and Deshmukh Rubber Works – both subsidiaries of Divekar Group – in Thane and Mumbai to the new location. "These facilities manufacture 10 million automotive seals annually. Under the new JV, we will raise capacity sixfold in the next four years," Divekar said.
Mecnam Products and Deshmukh Rubber have Indian OEMs like Mahindra & Mahindra and Kirloskar Oil Engines and multinationals like Piaggio and Bosch on its customer rolls.
The JV, which is Wallstabe & Schneider’s first operational base outside of Europe, is expected to increase its competitiveness on international projects and enable it to supply precision rubber seals to the Indian automotive sector.
Wallstabe & Schneider, a 70 million euro company, specialises in manufacturing precision O-Rings, profile seals and bonded rubber seals for the automotive industry. Its OEMs include BMW, Daimler and Volkswagen and renowned suppliers like Bosch, ZF and Continental.
Founded in 1960, Wallstabe & Schneider is headquartered in Niederwinkling, Germany. The automotive rubber seals market in India is currently estimated at about Rs 400 crore annually.
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