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Hema Engineering Industries Ltd & Verlicchi Group of Italy Enter into JV Print E-mail
Written by Ganesh   
Saturday, 11 April 2009

Design & Manufacturing facilities for 2 Wheeler Frames, Exhaust systems and Fuel tanks to be set up in India
New Delhi: Hema Engineering Industries Limited, today  signed a 50:50 Joint Venture with Verlicchi Group of Italy. The JV was signed in New Delhi by Mr. Chandresh Jajoo - Managing Director, HEIL and Mr. Alessandro Verlicchi - Managing Director, Verlicchi Group Italy. The new JV Company, “Verlicchi Hema Automotive” will be engaged in manufacturing Frames, Fuel Tanks & Exhaust Systems for the two-wheeler companies in India. The JV will also cater to the needs of European Automotive market through Verlicchi. Both the companies will hold an equal stake in the JV Company.

Mr. Alessandro Verlicchi, Managing Direcotor, Verlicchi Group, Italy and Mr. Chandresh Jajoo, Managing Director, Hema Engineering Industries Ltd.Speaking on this occasion Mr. Chandresh Jajoo - Managing Director, HEIL said, “a strong technical & financial collaboration with Italy’s Verilicchi Group will give HEIL access to cutting edge technology to not only manufacture but also to design products like Frames, Exhaust Systems and Fuel tanks.  As on today most OEM’s manufacture products as per designs from customers and have no inputs in the Design of the product. Therefore this JV company, ‘Verlicchi Hema Automotive’, will be an integrated SOLUTION PROVIDER and not just a component supplier”. 

While elaborating the expansion plans of HEIL Mr Jajoo said, “In phase I Hema group with the technical support of Verlicchi will set up a new state of the art manufacturing facility in Hosur, in 9000 Sq Meters of land. The initial investment in the project is estimated to be Rs. 17 Crores (approx 2.5 Million Euros) & the new JV targets to achieve a turnover of Rs. 5 Crores (approx 800,000 Euros) in the first year of operations with an aim to increase it to Rs. 25 Crores (approx 4 Million Euros) in the next 3 years”. 

Commenting on the occasion, Mr. Alessandro Verlicchi - Managing Director, Verlicchi Group Italy said, “the company's plan to enter the Indian market constitutes a major step in its global growth strategy.”

“Equally important to our growth strategy is the Indian Automobile industry, which is one of the world’s largest and fastest growing markets. This JV with HEIL will give us the desired start in the Indian region and a strong presence in Indian market. We believe that both companies are well-positioned to manage the integration of systems, deliver international quality product and develop a brand image that can create value among the two-wheeler companies.”

“I believe this Joint Venture between the two very accomplished partners – HEIL &  Verlicchi would open up opportunities for growth by offering win – win solutions to the customers & take this relationship to a new height” he added.
Verlicchi Group – is the world’s most renowned motorcycle & scooter frame manufacturer having in-house competence across the entire value chain from design to manufacturing. Verlicchi has expertise in manufacturing two wheeler frames, rear forks, fuel tanks, main & side stands, handlebars, car chassis etc. The company has a strong presence across the world and has manufacturing facilities in Italy, USA and Spain. Through this new JV with HEIL, Verlicchi makes a powerful entry into large & fast growing Indian automotive market. Verlicchi designs & manufactures frames for all the leading motorcycle brands in the world like Ducati, Yamaha Italia, Buell-Harley Davidson, Honda Italia, Honda Japan, Aprilia, BMW, Porsche etc.

Hema Engineering Industries Limited- Currently a 450 Crore revenue group, Hema has 25 years of experience in supplying performance critical auto components to almost all the major Indian OEM’s like HHML, TVS, Yamaha, Royal Enfield. The Group has 8 manufacturing facilities across 7 different locations spread across the country employing 2200 people, spread over an area of 5 lac sq. ft. HEIL manufactures a wide range of components like Swing Arms, Exhaust Systems, Main Stand, Side Stand, Handle Bars etc. HEIL’s association with the top manufacturers of the two wheeler companies & its multi manufacturing locations across India will give Verlicchi Group the right edge to enter into large and growing Automotive market in India.

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