The Anand Group, a prominent manufacturer of high-quality automotive systems and components valued at over USD 2 billion, has entered into a joint venture (JV) with South Korea's HL Group, a USD 8.1 billion conglomerate. This strategic partnership aims to not only double the size of the Anand Group's aftermarket business but also establish a stronger foothold for the Korean entity within the Indian market.The JV, named HL Anand Automotive Parts Private Limited, will significantly expand the aftermarket portfolio. It will feature products manufactured through Anand's existing JVs with HL Group's Mando Corporation, a leading automotive components manufacturer based in South Korea. These existing partnerships include HL Mando Anand Automotive Pvt. Ltd., specializing in steering, brake, and suspension systems, and Anand Mando eMobility Pvt. Ltd., focused on producing motors and controllers for electric vehicles (EVs).The new entity will offer a comprehensive range of aftermarket components designed for the passenger vehicle segment, catering to both domestic and international markets. Over the next two years, two dedicated distribution centres will be established to support the operations of HL Anand Automotive Parts Private Limited.HL Group, headquartered in Seoul, comprises 44 companies with a global presence spanning Asia, North America, Europe, the Middle East, and South America.Mahendra Goyal, Co-COO of Anand Group, expressed enthusiasm about the JV, emphasizing the company's strong commitment to the aftermarket business. He stated, This strategic JV with HL Group will significantly expand our aftermarket business in both domestic and international markets. The JV will capitalize on the strong Anand Group aftermarket ecosystem in India and HL Group’s sourcing expertise and well-established global network.Goyal anticipates substantial growth, targeting a Compound Annual Growth Rate (CAGR) of 15% over the next five years for the aftermarket business through this alliance. The joint venture will focus primarily on core products produced by the existing JV entities, and additional products may be sourced for future growth. The partnership will market products under the co-branded names of HL MANDO and Anand, leveraging the brand strengths of both organizations.Anand Group currently offers around 6,000 Stock Keeping Units (SKUs) in its aftermarket product portfolio, distributed through over 2,500 industry-leading channel partners and nine distribution centres across India. The JV has plans to introduce approximately 1,200 new SKUs within the next two years.Joon-Bom Kim, CEO of HL Holdings, expressed optimism about the partnership and its potential to benefit both companies. He noted that the collaboration between Anand Group, a respected automotive leader in India, and HL Group, a visionary industry leader in Korea with a global presence across various sectors, will positively impact both businesses. Additionally, it will contribute to the overall growth of India's thriving aftermarket sector.The Indian automotive aftermarket has been experiencing steady growth at an annual rate of approximately 10%, with an estimated market size of INR 85,000 crore (USD 10.6 billion). Globally, the aftermarket is valued at around USD 408 billion, according to industry reports. This strategic JV between the Anand Group and HL Group is poised to tap into this lucrative market, offering high-quality automotive components to meet the growing demand in India and beyond.