Nov 05: Gabriel India has outlined its growth priorities across passenger vehicle seating, advanced driver assistance systems, sunroof solutions and commercial vehicle segments, highlighting new business opportunities, capacity expansion and strategic partnerships during its latest concall.
A key development is the incorporation of Faurecia ANAND Seating India on October 19, 2026, through a joint venture between Gabriel and FORVIA. The venture was established with an initial investment of Rs 20 crore, with Gabriel holding 50% less one share and FORVIA holding 50% plus one share. The JV will manufacture seat frames and complete passenger vehicle seating systems, while seat mechanisms will be sourced from FORVIA's wholly owned Indian subsidiary. A new manufacturing plant is planned in Chennai alongside the existing Pune facility. Volkswagen will serve as the anchor customer, while FORVIA aims to capture approximately 10% of the Indian seating market over the next five years.
As part of the arrangement, Faurecia's existing seating business in India will be transferred through a slump sale, excluding the mechanisms business. The remaining frame business is valued at approximately Rs 150 crore, with the transaction expected to close by December 2026.
The company also expects HL Mando and HL Klemove to contribute meaningfully to its business from Q3FY27. Around 60–65% of HL Mando's revenue comes from Hyundai and Kia, while the business is expanding its presence with Tata Motors and Mahindra & Mahindra and has recently entered Maruti Suzuki. HL Klemove, which operates in the ADAS segment, supplies products to Hyundai, Tata Motors and M&M, with Maruti Suzuki identified as its next target. With the draft ADAS regulations covering passenger vehicles, commercial vehicles, two-wheelers and three-wheelers, product mapping across these segments is underway. Its current RoE and RoCE of approximately 10% are expected to move towards the company's average as capacity utilisation improves.
In the sunroof segment, the BC4i and BC4t programmes have entered commercial production. For the Hyundai Bayon, Gabriel will supply 75–80% of the panoramic sunroof volume. The customer has indicated annual model volumes of approximately one lakh units, with around 60% allocated to the domestic market and 40% to exports. While the Creta is expected to be phased out next year, supplies for the Creta EV will continue. The AI4 programme is scheduled to begin production next year, and Gabriel is participating in bids with Tata Motors and M&M. Further capacity expansion or relocation will depend on new business orders.
Across business segments, Gabriel maintains a share of over 85% in commercial vehicles and recorded growth in line with the industry. The reported commercial vehicle numbers include aftermarket and railway businesses. Aftermarket sales were softer during the quarter as OEM demand received priority. In passenger vehicles, growth remained below the industry level due to product mix. Meanwhile, supplies for the Bajaj Chetak in the two-wheeler electric vehicle segment commenced last month, with the company reporting a strong order pipeline. Henkel Anand's margin fluctuations were attributed to commodity and logistics costs rather than seasonality.
On the investment front, consolidated capital expenditure is expected to remain between Rs 1,000 crore and Rs 1,500 crore annually, primarily towards capacity expansion, new manufacturing plants and plant improvements. The board has also declared an interim dividend of Rs 2.15 per share.
Reiterating its long-term growth ambitions, the ANAND Group maintained its Vision 2030 target of achieving revenue of Rs 50,000 crore at the group level, with Gabriel positioned as a key growth vehicle in achieving this objective.
