New Delhi: Gurgaon-headquartered Sandhar Technologies sees big opportunity in the changing market dynamics and is gearing up to diversify and strengthen new segments.
It is expecting to enhance revenue share from automotive electronics from less than 2 per cent now to between 25-50 per cent in the next 4-5 years.
“We are looking at the changing times as an opportunity for newer venture, growth and technology, said Jayant Davar, co-chairman & managing director, Sandhar Technologies.
He claims that his company has not been impacted with the new norms coming in.
“But we thought this is the new opportunity to get into new product lines, which are now in transition,” he added.
For the same, the company has signed up with half a dozen new partners and also brought up its own technology to expand its product offerings. The Gurgaon-based company, which had a humble beginning with a single muffler parts for then Hero Honda in 1987, aims to double its revenue in the next few years.
According to sources, the company is planning to launch its first initial public offer (IPO) in the first week of March. The sources also suggest that the company has been evaluated at about Rs 2,000 crore.
Few months ago, the auto component manufacturer has filed draft papers with the market regulator Sebi to raise Rs 300 crore through the IPO. The company has invested about Rs 600 crore in past five years and will focus on consolidating them too.
In the automotive electronics, the company will soon venture into the parts like parking sensors, USD chargers, and smart helmets. These helmets will have embedded electronics. The company is also planning to get into smart locking system and cameras, too.
Sandhar has also signed a joint venture (JV) with Xinyang of Korea for audio visual Jinyoung Electro-Mechanics and is planning to set up a
JV company – Jinyoung Sandhar Mechatronics in Chennai. With Xinyang, the company will also make relays.
Jinyong Sandhar Mechatronics will manufacture and supply audio AVN panel assemblies and switches from its Chennai plant. The company has got orders from big OEMs like Hyundai.
It also plans another JV with Daewha Fuel Pump, a fully-owned subsidiary of Korea’s Daewha Group. The company is looking at manufacturing fuel pumps wipers, starter motors and oil filters in Gurgaon.
The company has signed many other JVs with Daeshin Machinery Ind. Co, Han-Sung IMP of South Korea, the company has strong collaboration with Korean companies.
Sandhar seems to be following the footsteps of another auto parts major Uno Minda group which has also in the past few years progressed in automotive electronic space and sealed many JVs with Japanese firm.
“We started with a single product to two-wheeler, and today, we have 21 products lines serving over 79 OEMs and have about 7,700 people and 40 manufacturing plants, of which 32 are operational, while rest 8 are in commissioning phase,” asserts Davar.
Son of a banker and an engineer, Davar set up the company with a first year turnover of Rs 3 lakh. In the first year, he invested Rs 30,000 with some loan. The company also makes cabin for off-highway equipments.