Adient and Arvind launch joint venture to manufacture and sell automotive fabrics in India
Adient Arvind Automotive Fabrics will produce high-performance fabrics at a world-class manufacturing facility in Ahmedabad, serving Indian and global customers in India
PUNE and AHMEDABAD, India, March 21, 2018 /PRNewswire/ -- Adient (NYSE: ADNT), the global leader in automotive seating, and Arvind Limited (BSE: ARVIND), one of the world's largest textile-to-retail conglomerates, today announced the formation of Adient Arvind Automotive Fabrics, a joint venture that will develop, manufacture and sell automotive fabrics in India.
Adient Arvind Automotive Fabrics will be based in Ahmedabad, India, where it will manufacture high-end performance fabrics for automotive seating systems at a world-class fabric manufacturing facility. The joint venture will benefit from synergies between Adient and Arvind, each bringing industry-leading technology and design capabilities in their respective fields. Working closely with its customers on long-term product road maps, the new company will provide Indian and global automakers with unrivalled product quality and innovative solutions in fabrics, enabling them to deliver new levels of comfort, aesthetic variety and design versatility to end users in India.
"Adient is committed to delivering new value to our customers while enhancing our fabrics product portfolio through continuing advancements. This partnership with Arvind Limited gives us an exciting opportunity to do just that in India's rapidly growing automotive market," said Jef Vercammen, vice president, Global Fabrics at Adient. "Combining Adient's global fabrics design and technological resources with Arvind's extensive manufacturing capabilities will enable us to accelerate the pace at which we bring innovative automotive fabrics products to market in India."
"We are transforming our business quickly through technologies and partnerships that enable us to explore and create new opportunities across our business divisions. One of our key pillars is to extend textile manufacturing into newer frontiers outside of fashion and into various spaces like human protection, construction and transport. This partnership is a watershed moment in this journey. The partnership will leverage Adient's market presence and automotive expertise with Arvind's textile manufacturing capabilities to provide customers superior and high-quality automotive seating solutions," said Mr. Punit Lalbhai, executive director, Arvind Limited.
"We are delighted to be partnering with Arvind, a well-respected leader in the textiles industry with a long history of manufacturing excellence, from yarn production through to innovative textile products," said Murali Rajagopalan, director and country manager, Adient India. "Through this collaboration Adient will gain a strong position from which to serve our Indian and global customers and ultimately offer more value to consumers in India."
Adient is the majority stakeholder in the new company with a 50.5 percent share and expects the joint venture to be included in its consolidated financial statements. Arvind and Adient will each have representation on the board of directors of Adient Arvind Automotive Fabrics.
About Adient:
Adient is the global leader in automotive seating. With 85,000 employees operating 238 manufacturing/assembly plants in 34 countries worldwide, we produce and deliver automotive seating for all vehicle classes and all major OEMs. From complete seating systems to individual components, our expertise spans every step of the automotive seat making process. Our integrated, in-house skills allow us to take our products from research and design all the way to engineering and manufacturing – and into more than 25 million vehicles every year. For more information on Adient, please visit adient.com.
About Arvind:
Arvind is a $1.5 billion conglomerate with interests in textiles, branded apparel and accessories, engineering and real estate and is one of the leading textile to retail and brands conglomerate in India. Arvind Limited, manufactures and sells about 300 million meters of fabrics and over 30 million pieces of ready to wear apparel. Its denim, woven and knit products are known for innovative and sustainable products, which are sourced by some of the most iconic apparel brands around the world.
Cautionary Statement Regarding Forward-Looking Statements:
Adient has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding Adient's future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" or terms of similar meaning are also generally intended to identify forward-looking statements. Adient cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Adient's control, that could cause Adient's actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: the ability of Adient to meet debt service requirements, the ability and terms of financing, general economic and business conditions, the strength of the U.S. or other economies, automotive vehicle production levels, mix and schedules, energy and commodity prices, the availability of raw materials and component products, currency exchange rates, the ability of Adient to effectively integrate the Futuris business, and cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Adient's business is included in the section entitled "Risk Factors" in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2017 filed with the SEC on November 22, 2017 and quarterly reports on Form 10-Q filed with the SEC, available at www.sec.gov. Potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this document are made only as of the date of this document, unless otherwise specified, and, except as required by law, Adient assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this document.
In addition, this document includes certain projections provided by Adient with respect to the anticipated future performance of Adient's businesses. Such projections reflect various assumptions of Adient's management concerning the future performance of Adient's businesses, which may or may not prove to be correct. The actual results may vary from the anticipated results and such variations may be material. Adient does not undertake any obligation to update the projections to reflect events or circumstances or changes in expectations after the date of this document or to reflect the occurrence of subsequent events. No representations or warranties are made as to the accuracy or reasonableness of such assumptions or the projections based thereon.
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