Sandhar Technologies Limited

Sandhar Technologies Limited (STL) is a customer centric component supplier primarily catering to automotive OEMs and largely focused on safety and security systems of vehicles with a pan India presence and a growing international footprint. The Company is a leader in the twowheeler locking systems market, and the commercial vehicle rear view market in India, and is one of the two largest companies catering to the commercial vehicle locking systems market, and the twowheeler rear view market in India. It is also one of the two largest manufacturers of operator cabins in India, along with being the largest player in the excavator cabins market. The companys business involves designing and manufacturing a diverse range of automotive components, parts and systems, driven by technology, process, people and governance. Presently, STL manufactures 21 categories of products, including such product categories that are manufactured through its Subsidiaries and Joint Ventures, which cater to different industry segments. The Portfolio comprises various categories of products including safety and security systems such as lock assemblies, mirror assemblies, operator cabins for offhighway vehicles, aluminium spools, spindles, and hubs. The Company also manufactures other product categories including wheel assemblies, handle bar assemblies, brake panel assemblies, sheet metal components such as fuel filler caps, fuel cock assembly, step pillions, tools, dies, moulds, other aluminium components, crane and tractor parts, plastic and painted parts such as door handles (inner and outer), panels for televisions, and cabinets for air conditioners. STL manufactures products from 29 manufacturing facilities across eight states in India, two manufacturing facilities in Spain, and one manufacturing facility in Mexico. Further, it is in the process of commissioning eight manufacturing facilities in India. This apart, it also has an overseas assembly and packaging centre located in Poland. Further, through SCID, the research and development activities are undertaken at Gurugram, Haryana. These facilities are located in key autoclusters in the northern, southern, and western parts of India, and most of the facilities are in close proximity to the plants of the OEM customers. Apart from allowing the company to optimise delivery to its customers, the proximity of these facilities to the plants of the OEM customers also facilitates greater interaction with customers, thereby enabling the company to respond to their requirements in a timely manner.Incorporated on October 19, 1987, STL commenced operations as a supplier to Hero (formerly Hero Honda Motors Limited) for sheet metal components. The Company is promoted by a firstgeneration entrepreneur, Jayant Davar, CoChairman and Managing Director of the Company, who has 30 years of experience in the OEM component manufacturing industry. The Company is also led by a qualified management team that has substantial industry, operational and financial experience, supported by a skilled work force.Sandhar Technologies Limited was incorporated as a private limited company with the name Sandhar Locking Devices Private Limited on October 19, 1987, at New Delhi, India. In 1988, the company was engaged by Honda Lock for providing technical assistance in relation to twowheeler locks. In 1992, the company started production of twowheeler locks, and fuel filler cap for Hero Honda at Gurugram. The name of the Company was changed to Sandhar Locking Devices Limited on conversion to a public limited company on September 21, 1992.In 1995, the company commenced production of twowheeler mirror assembly. In 1996, the company was engaged by Honda Lock for technical collaboration for twowheeler main switch 35100GBG8500 for C100 motorcycles. In 1998, the company was engaged by Honda Lock for technical collaboration for fourwheeler mirror assembly, handle assembly. In 1999, the company commenced supply of mirror assembly to Honda Cars.In 2002, Sandhar Auto Components Limited commenced production of zinc and aluminium pressure diecasting components at Manesar. In 2003, the company executed a joint venture agreement with Steady Stream Business Limited for production of tools and dies. In 2004, the company was engaged by Honda Lock for providing technical assistance in relation to fourwheeler lock assemblies. In 2005, SLD Auto was established for production of lock assemblies, and mirror assemblies in Bengaluru. The name of the company was changed from Sandhar Locking Devices Limited to Sandhar Technologies Limited(STL) on November 11, 2005.In 2006, a unit in Chennai, Tamil Nadu was established for steel wheel assembly. During the year under review, the company acquired Adeep Group companies engaged in the business of manufactured lock assemblies, steel wheel rims, and handle bars. During the year under review, Actis Capital LLC, UK made investment in the company. During the year under review, the company acquired Barcelona unit of TECFISA, for manufacture of spools for seat belt retractors and aluminium PDC products. In 2008, the company executed a joint venture agreement with JBM Auto Limited for production of moulds and dies. In 2010, the company established a unit at Chakan, Maharashtra for manufacture of door handles. In 2011, the company set up a unit in Pune Maharashtra for manufacture of plastic injection moulding components. During the year under review, the company acquired Steady Stream Business Limited, Taiwans stake in Sandhar Tooling. In 2012, Sandhar Technologies Poland sp. z.o.o., Poland established at unit in Czestochowa. During the year under review, GTI Capital Auto Investments I Pte. Limited (GTI Capital) became an investor in the company upon purchase of Equity Shares held by the Actis Group.In 2013, the company signed a technical collaboration agreement with JEM Techno, South Korea, for manufacture of relays. During the year under review, the company set up a dedicated research and development unit at Gurugram. During the year under review, GTI Capital Beta Pvt Ltd (GTI) became an investor in the company upon purchase of Equity Shares held by GTI Capital. During the year under review, the company acquired Mag Engineering, a company engaged in the business of manufactured operator cabins for offhighway vehicles. During the year under review, Sandhar Technologies Limited executed technical collaboration agreement with Lyssen Enterprises Co., Limited, Taiwan, for manufacturing instrument clusters, gauges, and senders / sensors.In 2014, GTI increased its shareholding in Sandhar Technologies Limited from 10.75% to 17.47%, by subscribing to Equity Shares issued in a rights issue undertaken by the company. During the year under review, Sandhar Technologies De Mexico, S. de RL de CV Mexico set up a unit in Guanajuato, Mexico. During the year under review, Sandhar Technologies Limited executed a joint venture agreement with Han Sung, to establish Sandhar Han Sung, for manufacture of high precision press parts, insert moulded contact plates, and switches. During the year under review, the company set up at unit in Pathredi, Rajasthan for manufacture of lock assemblies, mirrors, and door handles. During the year under review, production of relays based on Korean technology (ISO 10000) commenced at Sandhar Automotives Gurgaon JEM Division. During the year under review, the company acquired cabin manufacturing unit of Arkay Fabsteel Systems Private Limited, at Pune. In 2016, the company executed a joint venture agreement with DMRG and Tarun Agrawal for manufacture and trading of solar plants and components for solar power plants. In 2017, the company executed a joint venture agreement with Jinyoung Electro Mechanic, to establish Jinyoung Sandhar, for the purpose of manufacture, sell and assemble audio AVN panel and switches in India.On 11/12/2017 the company filed Draft Red Herring Prospectus and on 13/03/2018 filed Red Herring Prospectus with SEBI for raising Rs. 512.48 cr. The Issue dates were from 19/03/2018 to 21/03/2018 with Price Band of Rs. 327 to Rs. 332. The Issue got subscribed 6.12 times leading to its Issue Price being fixed at Rs. 332. The Shares got listed in BSE and NSE on 02/04/2018 at Rs. 345.00 which is 3.92% above Issue Price.In 2018, the company executed a joint venture agreement with Amkin Group to establish Sandhar Amkin Industries Private Limited to set up a joint venture to design, manufacture, market, sell and assemble, in India, helmet, helmet accessories and related parts, visors, safety headgear, riding protection accessories, storage box, pannier box and riding apparel. The company entered into another joint venture agreement with Daewha Fuel Pump, to establish Sandhar Daewha Automotive Systems Private Limited, to manufacture, sell and assemble, in India, fuel pumps, filters, starter motor and wiper blades. The company also entered into a joint venture with Daeshin to set up a joint venture for manufacturing, assembly, and sale of gear shifters and parking brakes for the fourwheeler segment. On 21 June 2018, Sandhar Technologies signed a Joint Venture agreement with Whetron Electronics Co., Ltd., Taiwan to supply future technology products to the Indian automotive OEMs. The product line would include Rear Parking Assist System, Auto Parking, Cameras, Around View System, Driver Monitoring System, Digital Video Recorder, Blind Spot Detection, Door Open Alert, Lane Departure Alert, Rear Cross Traffic Alert, Tyre Pressure Monitoring System and Head Up Display. Whetron Group is a leading supplier in automotive electronics and a global supplier to many of the vehicle manufacturers around the world like Honda, Renault, Suzuki, Toyota, Hyundai, Mitsubishi, Yamaha, Piaggio, PSA amongst others.