Pricol Limited signs MoU for an Exclusive Licensing Partnership with Kerdea Technologies, USA for Oxygen (O2) Sensor in India

Coimbatore (India), July 19, 2017: Pricol Limited (BSE: 540293 / NSE: PRICOLLTD), a leading manufacturer of automotive components for the global automotive market, today announced a new exclusive licensing agreement with Kerdea Technologies for Oxygen (O₂) Sensor. With Kerdea’s patented technology in oxygen sensor and Pricol’s superior manufacturing capabilities, this product will be made ready to cater to combustion engine applications in the two wheeler and three wheeler vehicle segments in India.

With this strategic partnership, Pricol’s intention is to expand its sensors portfolio in India and be ready for the upcoming Bharat Standard (BS)-VI Emission Regulations which the Indian government has planned to implement by April 1, 2020.

The oxygen or O₂ sensor, is designed to constantly monitor the oxygen content in the exhaust gases from the engine. O₂ sensors help to maintain the right Air-Fuel mixture so that the engine run efficiently with emissions well within the regulatory norms. Pricol recognizes the need to invest in such next-generation solutions that will deliver better performance and be environment friendly.

Speaking on the occasion, Mr. Vikram Mohan, Managing Director, Pricol Limited said, “In a fast-changing environment, it is critical to draw upon the highest level of expertise to design the technologies of tomorrow. We are excited to partner with Kerdea to bring innovative, ground-breaking technologies to our Indian customers. This licencing partnership will contribute to our constant efforts to deliver robust, technologically advanced and cost saving products in India. Post the rollout of BS-VI norms by 2020, Pricol is expecting to add over USD 60 to 70 Million to its top line with a healthy EBITDA margin with the products developed through Kerdea’s technology.’

 Signing the MoU, Dr. Douglas M. Carnes, CEO, Kerdea Technologies said, “We are extremely happy to partner with Pricol to create a transformation in the O2 sensor market and thereby create a pollution free India with the use of O₂ sensors. This licensing partnership will help us expand our footprint in India by redefining fuel efficiency and emission control and thereby improve product performance for two wheeler and three wheeler vehicle segment in India.”