ASK Automotive (P) Ltd and Fras-le S.A have signed an agreement to establish a joint venture in India. As per the agreement, both companies intend to enter into a partnership for the production of brake pads and linings for commercial vehicles to supply the OEM and IAM markets. Located in Manesar, the new company will operate under the name ASK Fras-le Friction Private Limited.
The JV plans to invest more than Rs 100 crore over a period of three years and generating a further employment of more than 900 people. Products from this newly formed entity will be supplied to India, Bangladesh, Nepal and Sri Lanka and will also be exported to other countries through Fras-le global network already serving more than 100 countries.
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.
Speaking on the development, K S Rathee, Chairman and Managing Director, ASK, said, “The Joint Venture will enable customers to enjoy world class products at competitive pricing. This is our contribution to the Make in India vision of the country.”
“The market for 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 for growth and internationalisation”, said Sérgio de Carvalho, CEO of Fras-le, referring, among other factors, to the economic stability in India.