Strategic Pivot: How Gabriel India’s Revised JV with Inalfa Reflects a New Era for Indian Auto Manufacturing 

Following the Indian government’s rejection of an initial proposal that would have granted Dutch partner Inalfa Roof Systems a 51% controlling stake, Gabriel India’s board has approved a revised joint venture structure that cements its own majority control with a 65% ownership share, strategically pivoting to comply with the “Make in India” policy while still securing Inalfa’s vital global technology and brand through a 35% minority stake and a suite of technical and licensing agreements, a move that not only underscores the growing clout of domestic manufacturers in navigating regulatory landscapes but also positions the company to dominate the rapidly expanding and lucrative sunroof market for India’s increasingly affluent consumers.

Strategic Pivot: How Gabriel India’s Revised JV with Inalfa Reflects a New Era for Indian Auto Manufacturing 

In a move that speaks volumes about the evolving landscape of Indian industry and the subtle power of government policy, Gabriel India Limited has strategically recalibrated its high-profile joint venture with Dutch global leader Inalfa Roof Systems. The announcement on November 12, 2025, revealing a new 65:35 ownership split in Gabriel’s favor, is far more than a simple corporate restructuring. It is a case study in corporate agility, a testament to the government’s “Make in India” convictions, and a clear signal of the booming potential of the Indian sunroof market. 

This revision comes after a decisive intervention by the Ministry of Heavy Industries, which rejected an initial proposal that would have given Inalfa majority control. The journey from the originally planned 51:49 split to the newly approved 65:35 structure reveals a fascinating narrative of strategic negotiation, regulatory boundaries, and a shared vision for long-term growth in one of the world’s most promising automotive markets. 

The Original Blueprint and the Government’s Red Line 

To understand the significance of this revision, we must first look back at the initial agreement, approved by Gabriel’s board in May 2023. The plan was for Inalfa Roof Systems Group B.V., a world-renowned supplier of sunroof systems to giants like BMW, Daimler, and Stellantis, to acquire a 51% controlling stake in the newly formed Inalfa Gabriel Sunroof Systems Private Limited (IGSSPL). Gabriel India, a cornerstone of the Anand Group and a leading suspension solutions provider in India, would hold the remaining 49%. 

This structure was logical from a certain perspective. Inalfa brings cutting-edge technology, global R&D prowess, and established relationships with international OEMs (Original Equipment Manufacturers). Ceding control seemed a reasonable price for Gabriel to secure this technological partnership and instantly plug into the global sunroof supply chain. 

However, this logic ran into a formidable obstacle: the Indian government’s strategic policy framework. The application for approval, filed under the specific regulatory pathway known as PN3, was formally rejected on August 14, 2024. 

While the official detailed reasons were not publicized, industry experts point to a confluence of factors rooted in India’s industrial policy: 

• The Spirit of “Make in India”: The government has consistently incentivized domestic ownership and control in strategic manufacturing sectors. Allowing a foreign entity to take majority control of a new venture in the burgeoning auto components space, especially one targeting a high-growth niche like sunroofs, could be seen as counter to this philosophy. 

• Technology Transfer vs. Control: The authorities likely favored a structure where technology transfer and collaboration were encouraged, but the ultimate operational control and profits remained predominantly within the Indian corporate ecosystem. A 51% foreign stake tips this balance. 

• Protecting Domestic Champions: Gabriel India is a homegrown success story. The government may have viewed the initial proposal as a potential takeover that could, over time, diminish the role and value of a strong Indian manufacturer in its own market. 

This rejection was not a “no,” but rather a “not like this.” It forced both companies back to the drawing board, challenging them to find a model that satisfied both their commercial ambitions and the nation’s industrial priorities. 

The Revised Structure: A Masterstroke of Compromise and Strategy 

The new agreement, approved by Gabriel’s board, is a masterclass in strategic compromise. Under the revised terms: 

• Gabriel India will hold a 65% majority stake and retain majority control of IGSSPL. 

• Inalfa Roof Systems will hold a 35% minority stake. 

This seemingly simple flip in numbers carries profound implications: 

• Gabriel Emerges Empowered: Gabriel India transitions from a junior partner to the dominant force in the JV. This ensures that key decisions, strategic direction, and the operational heartbeat of the company remain in Indian hands. It aligns perfectly with the government’s vision and strengthens Gabriel’s position as a key player in the automotive value chain. 

• Inalfa’s Strategic Commitment: Despite moving to a minority position, Inalfa’s commitment remains robust. A 35% stake is a significant, long-term investment. It signals that the access to the Indian market—projected to be the third-largest automotive market globally—is invaluable enough to forerun immediate majority control. The potential for volume and growth outweighs the need for dominant ownership. 

• No Additional Capital Outlay for Gabriel: Crucially, Gabriel has stated it will not make any additional investment at this stage. This indicates that the revised structure is likely being achieved through a reallocation of the existing equity in IGSSPL, which Gabriel currently owns 100%. This is a fiscally prudent move that allows them to secure a strategic partnership without straining their balance sheet. 

Deconstructing the Web of Supporting Agreements 

The joint venture is more than just a shareholding change. The board also approved a suite of interlocking agreements that form the operational backbone of this partnership. These documents reveal the intricate mechanics of how the JV will function: 

• Amended Technical Collaboration and Alliance Agreement: This is the lifeblood of the JV. Inalfa will provide the technological know-how, engineering support, and manufacturing processes required to produce world-class sunroof systems in India. This ensures that IGSSPL’s products meet global standards from day one. 

• Brand License Agreement: IGSSPL will gain exclusive rights to use Inalfa’s renowned trademarks within India. This is a powerful asset, allowing the JV to market itself as a provider of genuine, globally certified Inalfa technology, a significant competitive advantage when dealing with OEMs. 

• Addendum to the Corporate Service Agreement: This links the JV to the broader Anand Group ecosystem. Anand Automotive Private Limited will provide operational, administrative, and management support, leveraging the group’s established infrastructure and expertise to ensure a smooth and efficient launch. 

• Investment Agreement: This formally outlines the terms and conditions for Inalfa’s acquisition of its 35% minority stake in IGSSPL. 

This comprehensive framework demonstrates that this is a deeply integrated partnership, not a mere financial investment. It combines Inalfa’s global technology and brand with Gabriel’s and the Anand Group’s deep-rooted manufacturing expertise and understanding of the Indian automotive landscape. 

The Big Picture: Why the Sunroof Business is a Golden Opportunity 

This entire strategic maneuver is predicated on one key belief: the Indian sunroof market is on the cusp of explosive growth. 

For decades, sunroofs were a luxury feature reserved for premium vehicles in India. However, the market dynamics have shifted dramatically. The rising affluence of the Indian middle class, combined with intense competition among car manufacturers, has made sunroofs a highly sought-after aspirational feature even in the mid-size SUV and premium hatchback segments. 

The trend is clear: consumers are increasingly willing to pay a premium for enhanced comfort, luxury, and the “open-air” experience a sunroof provides. For Gabriel, diversifying from its core suspension business into this high-margin, high-growth niche is a strategic masterstroke. It future-proofs the company against market cycles in its traditional domain and taps into a new, lucrative revenue stream. 

By partnering with Inalfa, Gabriel instantly gains a decade of expertise, avoiding the costly and time-consuming process of developing this technology in-house. For Inalfa, this JV is a direct conduit to millions of new Indian cars that will require sunroofs in the coming years. 

Conclusion: A Blueprint for Future Partnerships 

The revised Gabriel-Inalfa joint venture is a landmark event. It shows that the Indian government is a active, strategic player in shaping industrial partnerships, willing to block deals that don’t align with its vision for a self-reliant yet globally integrated manufacturing sector. 

For multinational corporations, the lesson is clear: the Indian market is open for business, but on terms that increasingly prioritize domestic value creation and control. The path to success lies in crafting collaborative, rather than dominating, partnerships. 

For Indian companies, it’s a story of empowerment. It demonstrates that with strong domestic capabilities and a strategic market position, they can negotiate from a position of strength, securing world-class technology while retaining control of their destiny. 

As the partners now await the final regulatory green light, the industry will be watching closely. The success of Inalfa Gabriel Sunroof Systems will not only define the future of both companies but will also serve as a blueprint for how global technology and Indian manufacturing can unite to conquer the market of the future.