Supplying the winning components
Put your key into a Tata car or Hero Honda motorcycle and you’ll come into contact with just one of the 22 million lock sets that Sandhar Technologies Ltd (Sandhar) produces every year.
Sales of two-wheel bikes, passenger cars and commercial vehicles have all grown as India’s job market has improved and rural incomes have increased. Sandhar has benefited from this socio-economic upswing to become one of India’s fastest-growing auto components suppliers, with more than 4,500 employees, 22 manufacturing plants and 265,000 square metres of production space.
Sandhar’s domestic customers include well-known manufacturers such as Hero Honda, TVS Motor, Honda Car, Tata Motors and Ashok Leyland. It also exports to a growing number of international clients including Nissan, Hurd and Hewlett-Packard from its major facilities in Gurgaon and Bangalore. The company’s best-selling products are its locks, which account for 26% of sales. It also sells mirrors (13% of sales), sheet metal products (12%), wheel rims and assemblies (18%) and die-cast parts. Sandhar also made a modest investment in a small joint venture designed to manufacture and supply components for Indian tractor manufacturer: Escorts.
In December 2005, Actis invested US$21.1m in Sandhar to fund the acquisition of lock manufacturer Adeep in a complementary merger. Actis supported Sandhar to achieve operational efficiencies and grow its customer base. The Actis Environmental, Social and Governance team worked with the company to help it with energy audits.
Actis exited Sandhar in 2012.