Setco Automotive Ltd (Setco) and Lingotes Especiales S.A. (Lingotes) announced the formation of a 30 million Euros joint venture over 3 years called Lava Cast Pvt Ltd, focused on developing and manufacturing fully machined ferrous casting products for the automotive & other industries.
Setco is one of the largest suppliers of Lipe clutches for medium and heavy commercial vehicles. The Joint Venture will be called Lava Cast Pvt Ltd which will have equity participation by both companies. As part of this agreement, Lingotes Especiales will come on board of Lava Cast as the Technology Partner. Setco will be the majority partner with 80% stake while Lingotes will have 20%. Setco has a strong presence in the Indian market and with Lingotes' experience and expertise, they will further their business in this sector.
"The Commercial Vehicle segment in India has seen a dip but we see an upscale soon and this JV will help us cater to the needs of the industry with ease. Lingotes Especiales, with their 40 years of experience in the foundry industry will help us to extend our reach into new customer bases and to build our collective product portfolio in the coming years" said Harish Sheth, Chairman & Managing Director, Setco Automotive.
The foundry will be setup at Kalol (PMS), Gujarat adjacent to the current clutch manufacturing operations of Setco. The proposed foundry will start commercial production in one year.
Mr. Vincent Garrido, Chairman Lingotes Especiales said "We were always keen to enter India and have been searching for a partner for the past two and a half years. We are glad to have finally found a partner which has immense experience in the Indian market and already has world class products to its name"
