A technical tie-up with Frenzelit Werke Gmbh of Germany for making head gaskets and floatation of a 60:40 joint venture company in tandem with Royal Industries of Japan to produce two-wheeler gasket, from the core of the company's game plan to beef up service in the domestic market and expand international presence. According to Mr.Unnithan Chairman and Managing Director Sankar Sealing Systems the tie-up with Frenzelit will help his company supply head gaskets for engines in new generation vehicles.The company already sounded out commercial vehicle maker Ashok Leyland for supplying head gaskets for Hino engines. Infact, Ashok leyland is proposing to move towards a single Hino engine platform, Telco is also reported to have been favorably disposed towards getting head gasket from Sankar for engines in Indica cars.
The $50 million Frenzelit,a 121-year-old privately-owned company,is the pioneer in development of non-asbestos gasket material. The tie up with Sankar provides for no royalty payment. Yet, Frenzelit hopes the alliance will help it sell gasket material to sankar and enable it expand market reach. If the arrangement works well ,a jointly initiative for making non-asbestos gasket material in India is within the realm of possibility ,sources say.