Shivang Technocrats ties up with Sweden's Lareda Mekan AB

JV will develop and offer a portfolio of quality products to major automotive OEMs and other European clients

Pune-based Shivang Technocrats has entered into a strategic alliance with Swedish company Lareda Mekan AB to manufacture wide range of sophisticated automotive products.

The major focus of the tie will be to develop and offer a broad portfolio of quality products to major automotive OEMs and other European clients present in India and overseas as well. The deal is structured by ALCOR Mergers and Acquisitions, a portfolio company of ALCOR Fund.

The alliance is in tune with Shivang’s intent to focus on the customers of Lareda Mekan in India, Asia and Europeian contries to manufacture and supply seating systems, pedal systems and sheet metal parts/ products.

Speaking on the development, Lars Thunberg, chairman, Lareda Mekan AB said, “I look forward to launching the alliance in India to address South Asian and European customers and also plan to launch the Joint Venture with Shivang Technocrats to address the high quality requirements of European companies.”

The Alliance is projected to touch sales revenue of US$40 million in next five years. In order to set up collaboration, Lareda Mekan Sweden, will establish an Indian subsidiary, wherein the envisaged investment over the next five years will be approximately US $20 million.

The tie up is proposed to take shape in two phases. In the first phase, the new venture will serve the growing demand for automotive components domestically and globally. Lareda Mekan will kick start the alliance by creating an outsourcing channel to cater to the requirements of Lareda Mekan customers in India, Asia and Europe. In the second phase, the collaboration will take off as a full-fledged joint venture (JV) offering its products to markets like India, South Asia and Europe.

“This Alliance will bring in a range of international  technology , customers to Shivang Technocrats which will boost the entire Mac Steel Group to emerge as a global leader,” said, Ranjeetsingh Rajput, director of Shivang Technocrats.