AUTOCAR Professional EXCLUSIVE: Anand Group to push ahead with expansion, eyes Rs 50,000 crore turnover by 2030
The group, with revenues of Rs 19,000 crore, is betting on global expansion, including inorganic opportunities, to accelerate growth.
By Yukta Mudgal, Ketan Thakkar, Mayank Dhingra
Even as the auto industry taps the brakes, auto component giant Anand Group is hitting the accelerator. Defying the slowdown, Anand Group is aiming for revenue of Rs 50,000 crore by the end of the decade – nearly two and a half times its current size. To fuel the growth, the company will pour roughly Rs 4,000 crore into expansion over the next six years, with Rs 1,000 crore earmarked for the electrification. It also includes plans for three to four new manufacturing plants to meet the growing demand.
Anand Group, home to shock absorber maker Gabriel, comprises 24 companies, of which 10 are joint ventures in the US, France, Japan, and other major and smaller economies. It manufactures automotive components such as motors, drive trains, climate control products, engine cooling products, brake systems, sealants, electric motors, safety products and steering wheels. Gabriel, the flagship, has a 35% market share.
The group’s products cater to original equipment manufacturers (OEMs), EV players, and the aftermarket, and serves prominent automotive manufacturers, including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, Honda, and Toyota. Additionally, it has a significant presence in export markets, including North America, Europe, and Asia.
Growing Through Collaboration
The group, founded by Deep C Anand in 1961, has a history of achieving growth through joint ventures and organic expansion. It has seen its revenues double from pre-Covid levels, and sees the momentum continue till 2030 based on its organic and inorganic growth plans. It currently operates 14 joint ventures and maintains four technical collaborations with leading international companies.
The tie-ups, which ensure access to advanced technologies and solutions, include Inalfa Gabriel Sunroof Systems, Mahle Anand Thermal Systems, Haldex Anand India, Dana Anand India, Joyson Anand Abhishek Safety Systems, and Faurecia Clean Mobility.
Despite market uncertainties, Group CEO Mahendra K Goyal is upbeat for the medium term until 2030, and said the group is open to inorganic opportunities both in India and overseas. It will likely engage with external consultants to spot potential inorganic and organic growth opportunities.
“Through the normal course of our business, we should grow our business from the current levels (Rs 19,000 crore) to around Rs 35,000 crore. Plus, we are looking at joint ventures and inorganic opportunities to accelerate growth. These opportunities could potentially add about Rs 15,000 crore in the coming decade,” he said.
Goyal stated that the partnerships and acquisitions will aim to bridge the technology gap, provide customer access, or expand market access. He added that the group is exploring alliances for emerging technologies and supplementing existing business lines.
According to the Automotive Component Manufacturers Association of India (ACMA), the industry grew 10% to Rs 6.14 lakh crore in FY24. In the first half of FY25, the industry grew 11% year over year to Rs 3.32 lakh crore despite geopolitical challenges on the exports front. The automotive components industry’s revenue is expected to cross $80.1 billion in the financial year 2025, growing at an 8% CAGR since FY20, according to the Rubix Data Insights report.
Meanwhile, group flagship Gabriel has seen steady demand because of its powertrain-agnostic products such as suspension parts and shock absorbers. However, the company plans to de-risk itself by expanding its sunroof business — Inalfa Gabriel Sunroof Systems Pvt. Ltd.
According to Goyal, another joint venture, Mahle Anand Filter Systems Pvt Ltd, which manufactures filtration products and air conditioners, has also shown a positive trajectory, with an 8-9 times increase in product value.
According to auto industry experts, Indian auto component companies are likely to benefit exponentially from trends such as China Plus One, which aims to focus on countries other than China. Goyal says the shift is for real, and the group has started witnessing higher traction from its customers to procure parts from India than ever before. Hence, the group is also betting on its exports, which account for 14% of its total turnover. Goyal declined to guide future growth but reiterated that overseas markets remain a big opportunity.
While the group is eyeing global acquisitions, its central manufacturing hub will be India due to its cost-effectiveness. The group does not intend to open new plants as they may increase its costs. “We have enough space at our existing plants, and we would like to use that to expand our manufacturing footprint,” Goyal said.
Goyal, who spent over a couple of decades with the group, is also member of the executive board of Anand Group and is directly responsible for companies such as Mando Automotive India, a joint venture with Mando Corporation; Dana Anand India; Anand I-Power and Mahle Anand Filter Systems and Mahle Anand Thermal Systems — Anand’s joint venture companies with Mahle GmbH, Germany. In addition, he is responsible and accountable for the group’s aftermarket business. Goyal, formerly Group President and Co-COO, has recently taken over as President and Group CEO. He is also a key member of the Anand Management Forum, which oversees the group’s operational issues.
EV Push
Anand’s push towards green mobility has given shape to its clean tech platform, Anevolve, whose growth is influenced by the demand for electric vehicles (EVs). As per Goyal, the EV market will certainly grow, but only the speed of growth will define what the future holds for the EV auto component industry.
Anevolve has established key partnerships to advance clean mobility solutions. One of its companies, Anand Mando e-Mobility (AMeM), is a joint venture with South Korea’s Mando Corporation, focusing on electric motors and controllers for two-, three-, and four-wheelers. Anevolve has also collaborated with Japan’s Headspring Inc. to support advanced EV powertrain and charger development. It also has a power electronics division in Bhiwadi, Rajasthan, called Anevolve Powertronics.
Jaisal Singh, Chairman of Anevolve and Vice Chairman of the Anand Group, stated that he sees a potential business of about $500 million in the coming years and expects the EV business to account for 25 percent of the group’s total turnover. The EV arm expects to generate revenues of at least Rs 3,500 crore by FY28.
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