Gabriel India : Partners with Faurecia for Expansion

DHARMESH BHATT (Research Analyst) SEBI Registration No. INH000009685

Gabriel India Limited today announced a major strategic expansion into passenger vehicle seating components through a joint venture agreement with Faurecia Automotive Seating India Private Limited (FASI). The proposed Joint Venture Company, to be named Faurecia Anand Seating India Private Limited, aims to leverage combined strengths to design, manufacture, and distribute passenger vehicle seats and seating systems across domestic and international markets. **Key Highlights of the Joint Venture Announcement :** *Ownership Structure: The ownership ratio is split at 50% plus 1 equity share for FASI and 50% less 1 equity share for Gabriel India. * Capital Commitment & Funding:Total planned paid-up capital is ₹100 Crore. * Tranche 1 (At Incorporation): Total ₹20 Crore (Gabriel India: ₹9.999999 Crore; FASI: ₹10.000001 Crore). *Tranche 2 (At Closing): Total ₹80 Crore split equally (₹40 Crore each). Total investment by Gabriel India stands at ₹49.999999 Crore via cash consideration. * Governance & Leadership: The Board will consist of 6 directors (3 nominated by each party). FASI will nominate the Chairman (with a casting vote) and the Chief Operating Officer (COO), while Gabriel India will nominate the Deputy COO. Reserved matters will require affirmative votes from both parties. *Ancillary Agreements & Slump Sale: Following incorporation, the JV Co. will enter into:A Business Transfer Agreement (BTA) to acquire FASI’s existing frames business on a slump sale basis (excluding mechanisms). Technical Services & IP Licensing Agreements (TIPLA) with Forvia/Faurecia India. Corporate Service Agreements (CSA) with Anand Automotive Private Limited (AAPL) and FASI for management support. Target Timeline: Completion of the acquisition/transaction is targeted by December 31, 2026.