Imperial Auto Industries Limited (IAI), one of the oldest auto parts makers in India, has recently acquired SB Rohrform- und Schlauchtechnik GmbH in Pleidelsheim, Germany, and will convert it into its technical development and manufacturing location for European car, engine and truck OEMs.
IAI is India’s largest integrated manufacturer and assembler of fluid transmission products covering all spectrums that include flexible high-pressure assemblies, metal tubular assemblies, low-pressure hose assemblies and rubber components. Established in 1969, it manufactures products for the passenger car, commercial vehicle, construction & agricultural equipment and two- & three-wheeler industries.
S B Rohrform is in the business of tubes and lines since 1997, and has worked as a primary path development supplier for several passenger car and Tier-1 companies in Germany. Located in Pleidelsheim with 30 minutes access to Stuttgart and technical headquarters of many OEMs, SBR will be one of the key locations as IAI expands its footprint in the German market.
The new facility will see expansion in prototype and series production with warehousing capability in the near future to meet supply chain expectations in the European Union. This 100% acquisition by Imperial Auto in Germany will complement its strategy in Indianapolis (USA) and 19 manufacturing locations in India for producing best-in-class products at highly competitive pricing for global OEMs.
SBR will fit well in Imperial Auto India’s plan to expand their market share in European Automotive segment by providing an aggressive and faster prototype product development cycle at a competitive commercial advantage from the rest of their European and American competitors.
IAI has been exporting to German automotive companies, for the last couple of years. Upon asking what strategic growth does the company envisage going forward, Tarun Lamba, CEO of Imperial Auto Industries stated, “We see a growing opportunity with other OEMs in Germany, who are looking at sourcing components from India. This acquisition helps us engage better with the customers and develop products which can be productionized in India, in the long run.” He remarked that this will be the company’s footing in the German passenger car market and will also give them a better visibility into the future of the car industry in India.
Tarun is optimistic that the acquisition will give IAI a better visibility of what is happening in the Western passenger car market such as use of alternate fuels, emission norms and so on. "It also helps us deal with high performance and high speed cars, which will be the future of the Indian industry as well," he explains.
Although the acquisition is focused on passenger cars, Imperial Auto's exposure to the truck & construction equipment industry combined with this acquisition will help them engage better with truck manufacturers & construction equipment manufacturers.
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