Zavenir-Kluthe Group becomes a 50:50 partnership venture, exploring areas to offer sustainable paint processes and surface treatment technologies to the Indian market.
19 Jul 2017 | 12904 Views | By Mayank Dhingra
India’s Zavenir Daubert, founded in the year 1995 and been operating with its range of anti-corrosion chemical materials for consumption in the automotive space, has struck a JV with Kluthe from Germany, which specialises in paint shop management technologies and metal working fluids.
Zavenir, which closed FY17 with net ...
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India’s Zavenir Daubert, founded in the year 1995 and been operating with its range of anti-corrosion chemical materials for consumption in the automotive space, has struck a JV with Kluthe from Germany, which specialises in paint shop management technologies and metal working fluids.
Zavenir, which closed FY17 with net revenues of Rs 100 crore, has, since 2011, already been in a licensed agreement with Kluthe, offering its metal cutting and surface cleaning products to major OEs and component manufactures in India.
The JV now aims to reinforce the relationship of the two companies and will allow leveraging each other’s strengths, making Zavenir’s manufacturing and marketing capabilities to be utilised for local production of the industrial paint and metal treatment technologies from Kluthe.
Zavenir-Kluthe Group has invested Euro 3Mn (Rs 22.5 crore) into the project and targets commencement of production at the existing facility of Zavenir in Gurugram, Haryana, by the end of CY17.
The infused capital also includes setting up of a new technical centre in the Gurugram facility within the next one year, focusing local formulation of new products and development of technologies.
With supplies of corrosion treatment oils, metal cutting oils and paint purge cleaning solutions already on the ground, the company is in talks with OEs and ancillary providers to start offering its new paint shop management technologies towards the end of the year.
Post JV, the collaboration is also looking at establishing a green-field manufacturing facility in the western part of the country by 2020.
Speaking at the JV signing ceremony in NCR today, Martin Kluthe, managing director, Kluthe Group, said, “We would not just be offering surface treatment and paint process technologies, but, will be providing end-to-end paint shop management solutions, taking care of waste recycling to offer a sustainable automotive paint shop environment, at the same time, increasing business viability and profitability by leveraging these waste resources.”
Saket Bhartia, managing director, Zavenir, said, “Zavenir has in the past built up a leadership position in the Indian corrosion prevention markets, which is poised to grow to 10mn vehicle sales in the coming five years. With this strong commitment from Kluthe, Zavenir-Kluthe Group will aspire to become a top 3 player in the INR 20 Billion metal working fluid market in the country by 2020.”
With operations in 14 countries across the world, and product sales spanning more than 50 global markets, Kluthe also views South East Asia as one of its core focus regions in the present day. With India being a strong emerging market and with the government’s push on ‘Make in India’, the company aims to explore the highly growth oriented automotive sector, which is poised to grow significantly in the coming decade.