Auto parts maker Pricol has announced an exclusive licensing agreement with US-based Kerdea Technologies for making oxygen (O2) sensor.
Under the deal, O2 sensors, made out of Pricol factories, will be supplied to combustion engine applications in the two- and three-wheeler vehicle segments in India. The sensor is designed to monitor the oxygen content in the exhaust gases from the engine. The sensors help to maintain the right air-fuel mixture so that the engine runs efficiently with emissions well within the regulatory norms, according to a statement. “This licensing partnership will help to deliver robust, technologically advanced and cost saving products in India,” said Vikram Mohan, Managing Director, Pricol.
After the rollout of BS-VI norms by 2020, Pricol is expecting to add over $60-70 million to its top-line with a healthy EBITDA margin with the products developed through Kerdea’s technology. “This partnership will help us expand our footprint in India by redefining emission control, and thereby, improve product performance for two and three-wheeler vehicle segments,” said Douglas M Carnes, CEO, Kerdea Technologies.