Gabriel India Limited, a leading auto component manufacturer, has announced a significant move into the lubricants and specialty fluids industry through a joint venture with SK Enmove Co., Ltd, a South Korean corporation. This strategic partnership aims to expand Gabriel India's portfolio and tap into the growing market for engine oils, e-fluids, and other specialty lubricants.

Key Details of the Joint Venture

The Board of Directors of Gabriel India has approved the formation of a new joint venture company (JV Co.) with the following structure:

*Subject to approval by the Registrar of Companies

Business Scope

The joint venture will focus on a comprehensive range of activities in the lubricants sector, including:

• Engineering and designing
• Development and manufacturing
• Packaging and blending
• Marketing and distribution
• Import and export operations

The product portfolio will encompass:

• Engine oils (motorcycle, passenger car, heavy-duty diesel)
• E-fluids for electric vehicles
• Shock absorber oils (SAO)
• Industrial lubricants
• Greases
• E-thermal fluids (for thermal management)

Strategic Agreements

Post-incorporation, the JV Co. will execute several key agreements:

1. Technology License Agreement (TLA) with SKEN for technological support
2. Corporate Service Agreement (CSA) with Anand Automotive Private Limited for operational support
3. ZIC Trademark and Brand License Agreement for brand usage rights
4. Business Transfer Agreement (BTA) to acquire SK Enmove India Private Limited's existing business

Governance Structure

The joint venture's governance has been carefully structured to ensure balanced representation:

• Board Composition: 2 directors from Gabriel India, 3 from SKEN
• Rotating Chairmanship: Alternating every 2 years between partners
• Key Positions: Gabriel India to appoint Managing Director/COO, SKEN to appoint Joint Managing Director/Joint COO
• Voting Rights: Proportional to shareholding
• Reserved Matters: Certain decisions require affirmative votes from both partners

Market Implications

This joint venture marks Gabriel India's strategic entry into the lucrative lubricants market, leveraging SK Enmove's technological expertise and the 'ZIC' brand. The move is expected to diversify Gabriel India's revenue streams and position it competitively in the evolving automotive and industrial lubricants sector, particularly as the market shifts towards electric vehicles and specialized fluids.

Investors and industry observers will be watching closely to see how this partnership unfolds and its potential impact on Gabriel India's market position and financial performance in the coming years.

Note: The joint venture is subject to regulatory approvals and is expected to be operational by November 30, 2025, or as mutually agreed by the partners.

Gabriel India , a prominent auto component manufacturer, has announced a significant increase in its quarterly net profit, showcasing the company's resilience and growth in the automotive sector.

Financial Performance

The company reported a consolidated net profit of 619.00 million rupees for the first quarter, marking a notable improvement from the 576.00 million rupees earned in the corresponding period of the previous year. This represents a year-over-year growth of 7.5%.

Key Highlights

Revenue and EBITDA Growth

Gabriel India's revenue increased to 10.98 billion rupees from 9.46 billion rupees year-over-year, indicating strong top-line growth. The company's EBITDA also rose to 875.00 million rupees from 779.00 million rupees in the same period last year. However, it's worth noting that the EBITDA margin slightly declined to 8.90% from 9.02% in the previous year.

Industry Implications

The positive financial results from Gabriel India, a key player in the auto component manufacturing sector, could be indicative of a broader recovery or growth trend in the automotive industry. The company's ability to increase its profits and revenue suggests effective management strategies and possibly improved market conditions for auto parts manufacturers.

Looking Ahead

While Gabriel India has shown impressive growth in its quarterly profits and revenue, it's important for investors and industry observers to consider these results in the context of broader market trends and the company's long-term performance. The slight decline in EBITDA margin may warrant attention in future quarters.

Gabriel India's performance underscores the resilience of well-positioned companies in the automotive supply chain, even as the industry continues to navigate global challenges and evolving market dynamics.