This collaboration aims to expand the aftermarket product offerings for passenger vehicles and explore fresh market opportunities for both companies. The joint venture is projected to achieve a two-fold increase in Anand’s aftermarket sales within a five-year period.
The joint venture will enhance the aftermarket product range by incorporating items manufactured through Anand’s existing collaborations with HL Group‘s Mando Corporation, a leading automotive components company based in Korea. These established partnerships include HL Mando Anand Automotive, specializing in steering, brake, and suspension systems, and Anand Mando eMobility, focused on producing motors and controllers for electric vehicles (EVs).
The partnership will operate under the name ‘HL Anand Automotive Parts Pvt Ltd’ and offer a comprehensive selection of aftermarket components for the passenger vehicle segment, catering to both domestic and international markets. Within the next two years, two dedicated distribution centers will be established for the new company.
HL Group, headquartered in Seoul, encompasses 44 companies spanning across Asia, North America, Europe, the Middle East, and South America.
Commenting on this new joint venture, Mahendra Goyal, co-COO of Anand Group, stated, “Anand Group places a special emphasis on the aftermarket business and aims to outpace the market’s growth. This strategic partnership with HL Group will significantly expand our aftermarket operations in both domestic and international markets. The joint venture will leverage the robust ANAND Group aftermarket ecosystem in India and HL Group’s sourcing expertise and well-established global network.”
He remarked, “Through this partnership, we anticipate achieving a 15% Compound Annual Growth Rate (CAGR) in our aftermarket business over the next five years. The company will prioritize core products manufactured by the existing joint venture entities while also exploring opportunities to source additional products for growth. This joint venture will market products co-branded as HL Mando and Anand, capitalizing on the brand strengths of both partners.”
The Anand Group currently offers a diverse range of around 6,000 aftermarket products, which are efficiently distributed through a network of over 2,500 leading channel partners and nine strategically located distribution centers across the country. Over the next two years, the JV aims to introduce approximately 1,200 new SKUs.
Discussing the joint venture, Joon-Bom Kim, CEO of HL Holdings, who signed the agreement at Anand’s New Delhi corporate headquarters alongside Mr. Goyal, commented, “Anand Group is a highly esteemed leader in the Indian automotive industry. The collaboration between HL Group, a visionary industry leader in Korea with a strong global presence across various sectors, and Anand, with its extensive aftermarket network in India, will benefit both businesses and contribute to the expansion of the opportunity-rich Indian aftermarket sector.”
As per industry reports, India’s automotive aftermarket, experiencing annual growth of around 10%, is valued at approximately Rs 85,000 crore ($10.6 billion), while the global aftermarket is estimated at around $408 billion.