Gabriel India to Acquire 30% Stake in HL Klemove India for US$98.44 Million, Enters ADAS & Automotive Electronics Segment
Gabriel India Limited has announced a strategic investment in HL Klemove India Private Limited, marking a major expansion into the fast-growing automotive electronics and autonomous driving technology market. The company’s Board has approved the acquisition of 30% minus one share in HL Klemove India from South Korea’s HL Klemove Corporation for an aggregate consideration of US$98.44 million.
The transaction will transform HL Klemove India into a joint venture between Gabriel India and HL Klemove, combining global automotive technology expertise with Gabriel India’s strong manufacturing and automotive component capabilities.
Strategic Entry into Advanced Automotive Electronics
The investment represents Gabriel India’s entry into high-growth segments such as Advanced Driver Assistance Systems (ADAS), autonomous driving technologies, and automotive electronics.
Upon completion of the transaction:
- Gabriel India will acquire 3,78,44,999 equity shares.
- The company will own 30% minus one share of HL Klemove India.
- HL Klemove Corporation will retain 70% plus one share.
- HL Klemove India will become an associate company of Gabriel India.
Transaction Value
The acquisition will be executed through a Share Purchase Agreement (SPA) under which Gabriel India will purchase the shares from HL Klemove Corporation.
Deal Highlights
- Acquirer: Gabriel India Limited
- Target: HL Klemove India Private Limited
- Seller: HL Klemove Corporation (South Korea)
- Investment Value: US$98.44 million
- Stake Acquired: 30% minus one share
- Shares Purchased: 3,78,44,999 equity shares
Joint Venture to Drive Future Mobility Technologies
Alongside the acquisition, the companies will execute a Joint Venture Agreement (JVA) that will govern the operations and management of HL Klemove India.
The joint venture will focus on developing, manufacturing and supplying advanced automotive technologies for the Indian market, including:
Autonomous Driving Solutions
- Radar systems
- Front cameras
- LiDAR
- Automated Driving Control Units (ADCU)
- Automated Parking Control Units (APCU)
- ADAS software
Automotive Electronics
- Brake ECUs
- Steering ECUs
- Chassis Control Units
- Fuel Pump Controllers
- Torque and Torque Angle Sensors
- Acoustic Vehicle Alert Systems (AVAS)
- SCR control systems for BLDC pumps
Strong Growth Profile of HL Klemove India
HL Klemove India has witnessed steady business growth over the last three years.
Revenue Performance
- FY24: ₹691.12 crore
- FY25: ₹799.84 crore
- FY26 (Unaudited): ₹1,048.83 crore
The company manufactures advanced automotive electronic systems for India’s rapidly evolving passenger vehicle industry.
Governance Structure
The Joint Venture Agreement outlines a balanced governance framework.
Key provisions include:
- 10-member Board
- 6 directors nominated by HL Klemove
- 4 directors nominated by Gabriel India
- Two Co-Chairpersons representing both partners
- Reserved matters requiring affirmative approval from both shareholders
- Managing Director nominated by HL Klemove with functional reporting to both partners
Anand Automotive to Provide Operational Support
As part of the transaction, Anand Automotive Private Limited, a promoter group entity of Gabriel India, will enter into a Corporate Services Agreement (CSA) with HL Klemove India.
Under this agreement, Anand Automotive will provide management, operational and corporate support services to the joint venture, helping accelerate business growth and operational efficiency.
Why This Acquisition Matters
The investment gives Gabriel India access to one of the fastest-growing segments of the automotive industry.
Key strategic benefits include:
- Entry into ADAS and autonomous driving technologies
- Expansion into automotive electronics
- Diversification beyond conventional suspension products
- Partnership with a global automotive technology leader
- Opportunity to benefit from increasing vehicle electrification and software-driven mobility
With Indian automakers increasingly adopting advanced safety and driver-assistance technologies, the partnership positions Gabriel India to participate in the next phase of automotive innovation.