Fras-le S.A. and ASK Automotive (P) Ltd., signed, in Caxias do Sul, Brazil, an agreement to establish a joint venture. According to the agreement, the Companies plan to enter into a partnership for the production of brake pads and linings for commercial vehicles to supply the IAM and OEM markets. Located in Manesar, Haryana State, the new company will operate under the name ASK Fras-le Friction Private Limited. The new company’s products will be supplied to India, Bangladesh, Nepal and Sri Lanka and will also be exported to other countries through Fras-le.
The Joint Venture will require an investment of $5.1 million by Fras-le in ASK’s current facility, which already manufactures products for commercial vehicles. Fras-le will have the controlling interest (51 percent) and ASK Automotive (P) Ltd. will have 49%. The other companies of ASK Group — which operate within other market segments – will remain under the total control of ASK Automotive (P) Ltd. The Joint Venture will allow the company to add production capacity and versatility to the production of brake pads and linings for commercial vehicles (trailers, trucks and buses above 3.5 tons), offering cost improvement opportunities to the global structure.
“The market of commercial vehicles in India is very large and shows excellent prospects for future development. Fras-le wishes to be part of this market, which is in line with our plans growth and internationalization,” stated the CEO of Fras-le, Sérgio de Carvalho, referring, among other factors, to the economic stability in India.
“Within our group, we have a long history of participating in Joint Ventures and we believe that this operation in India will be very successful as well," said David Abramo Randon, President of Randon Companies.
“It is a great union between two world leaders, ASK being the world leader in two wheeler friction and Fras-le being among the world leaders in the commercial vehicle friction segment. This will enable customers to enjoy a world class product at competitive pricing. It is our contribution to the “Make in India” vision," stated K. S. Rathee, chairman and managing director of ASK.
“I foresee a great future for the Joint Venture as it combines best-in-class technology and India’s manufacturing strengths,” added Aman Rathee, president, ASK Automotive — friction division.
