Arvind Limited, India’s leading textile-to-retail conglomerate has recently announced that it has joined hands with the Indian arm of US-based automotive seating company Adient. Reportedly, the joint venture aims to supply India automotive industry with high-end performance fabrics for automobile seating systems.
Experts deem that the strategic JV will result in the development of the fabrics product portfolio for Adient, while for Arvind, it would plausibly help strengthen its foothold in the growing automotive industry. Punit Lalbhai, executive director, Arvind Limited, said that the affiliation will leverage on Adient’s automotive capabilities & expertise in conjunction with Arvind’s textile manufacturing and market presence to deliver high performance & quality seating solutions.
Reports reveal that Adient will be the majority shareholder in the new unit with 50.5% share and expects the deal to be counted in its consolidated financial statements.
In a company statement, the VP of Global fabrics at Adient, Jeff Vercammen, was quoted stating that the aim of the deal was to fast-track their manufacturing of versatile & innovative automotive fabrics by combining technological resources and Arvind’s textile manufacturing capabilities in India. He further added that the collaboration with Arvind Limited has presented the company with a stimulating opportunity to deliver new value to customers, especially in the rapidly growing automotive industry of India.
Reports reveal that the new company will be named as Adient Arvind Automotive Fabrics and the manufacturing unit will be based in Ahmedabad, Gujarat.
The joint venture company will bring in synergies from both Adient and Arvind, each bringing forth industry-leading and next generation technologies in their own fields, cite sources. Leveraging each other’s capabilities will in turn enable the duo to outpour the Indian and global automotive industry with innovative solutions in fabrics, aesthetic variety, design versatility, and new levels of comfort, the company revealed in a joint statement.