Grammer, AllyGrow set up auto design centre

Grammer, the 2 billion euro German automotive interior parts and seat manufacturer, has entered India with a joint venture called AllyGram Systems and Technologies to produce seating and interiors for the passenger and commercial vehicles.

The first product to roll out of the JV would be an innovative armrest with high functionality, storage, display, movable cup-holder and charging stations for luxury vehicles.

The other products in the works are the state-of-the-art headrest and consoles, suspension technology and trim technology and electric seats and components, high-end seat massagers, among others.

The joint venture will enable Grammer to make inroads in the growing Indian automobile market, which last fiscal took over Germany to become the world’s fourth largest.

While initially German partner will hold 30 per cent and 70 per cent by Indian firm AllyGrow Technologies based in Pune. The JV is initially investing a total investment of 2.5 million euro (about Rs 20 crore).

The new venture has already established and running a design and technical centre in Pune, home to over 300 German auto and other firms, with 40 hired engineers. Over the next three years, it would hire over 120 engineers to cater to the global market.

“This new design and technical centre in Pune will design and develop innovative products for the luxury and mass automotive market in India as well as our clients globally,” Manfred Pretscher, COO at Grammer AG told Financial Chronicle.

He said the growth in automotive market was shifting from Germany and Europe to Asia and emerging economies. “We want to be closer to these growing automotive markets,” Pretscher said.

He said new design and tech centre is wired 24/7 to its global 500 engineers employed at 10 research and development centres in Europe, North American and Asia to design and develop interior parts for its global clients.

He said India, the world’s fourth automobile market, is growing and important market. “We are here for a long haul as the engineering R&D and product development market in India is forecasted to grow at a CAGR of 20.55 per cent to reach $45 billion by 2020 from $28 billion in FY18,” Pretscher pointed out.

He said his brand served clients from luxury car makers such as German Mercedes-Benz, BMW, Audi, Jaguar Land Rover, to Volkswagen, Ford, Toyota, Fiat, Nissan, and General Motors, among others.

Pretscher said the new tech centre will help Grammer to save cost and reduce the share of external services in connection with sustainable development.

“We are excited at the prospect of leveraging the global expertise of both organisations and building a strong partnership based on state of the art engineering skills,” Prashant Kamat, CEO at AllyGrow Technologies, said.

Michael Gonsalves