Promet Group and SKH Group establish joint venture
Leaders of the Czech and Indian markets will jointly manufacture parts for leading European car manufacturers in the Czech Republic.
The engineering group Promet Group and the Indian group SKH Group, both long-standing players in the automotive sector, are establishing a joint venture with the aim of launching the production of specific components for the automotive industry in the Czech Republic. The cooperation has already been approved by the Office for the Protection of Competition. The new company SKH PROMET a.s., originally founded as PROMET AUTOMOTIVE a.s., will create new production capacity focused on supplying complex parts for leading European car manufacturers, led by the Volkswagen Group.
Through its company Tawesco and its two subsidiaries, Promet Group is a major European supplier to the automotive industry, as well as to manufacturers of agricultural and handling equipment. Kopřivnice-based Tawesco is one of the three leading companies in Europe in terms of the complexity of its production of pressed and welded parts. It also has the second largest production of pressing tools in the Czech Republic. The company's main customers today include Škoda Auto, Volkswagen, Audi, Mercedes-Benz AG, and parts manufacturer Magna. The annual turnover of Tawesco and its subsidiaries amounts to CZK 4 billion.
The Indian SKH Group is part of the Krishna Group. Since 2006, it has established itself as a leading manufacturer of metal and chassis parts with various applications for manufacturers of passenger, commercial, and off-road vehicles in the Indian and global markets. SKH supplies parts to leading car manufacturers, including Maruti Suzuki, Tata, Mahindra, Honda Cars, Renault-Nissan, Škoda Auto, Audi, Volkswagen, Porsche, Bentley, and Mercedes-Benz. Currently, SKH Group has 30 manufacturing plants located in all major automotive regions in India. Annual sales exceed USD 800 million.
"I am very pleased that in our search for further opportunities to develop Tawesca's business in the automotive sector, we have found a partner in SKH Group. A family-owned company and a leader in the local market. A company whose dynamic growth in recent years is proof that this segment still has interesting development potential for companies of our type with a strong market position and expertise," comments Denisa Materová, CEO of Promet Group, on the start of the cooperation.
The joint venture agreement was concluded after more than a year and a half of negotiations between the two companies. "The partnership with SKH Group is part of our corporate strategy to offer innovative solutions to our customers. We see the newly formed joint venture as the basis for joint expansion in the European market. Creating similar collaborations with strong partners with added value is part of Promet Group's strategy," says Michael Tělecký, Director of Strategy and Acquisitions at Promet Group.
"Each company has its own specific know-how, and combining them will create synergy in individual parts. We take care of all stages of preparation, from design and testing to market launch. Always according to the needs of the specific customer. These will be automotive parts made of steel and aluminum in the form of complex pressed and welded assemblies," adds Margita Rejchrtová, CEO of Tawesca.
The joint venture is scheduled to start production by the end of 2026.
Basic information about Promet Group and SKH Group
Promet Group is a family-owned engineering company that oversees a group of more than forty companies operating in the fields of engineering, metallurgy, and engineering. They employ over four thousand people in the Czech Republic and abroad. The group is based in Ostrava. Its plants are mainly located in Moravia, such as Tawesco in Kopřivnice. Others are located in Nový Jičín, Paskov, Petřvald, Vsetín, but also in Pečky and Úvaly near Prague in Central Bohemia and in Slavonski Brod in Croatia. The customers of the individual divisions include leading European car manufacturers such as Škoda Auto, Volkswagen, Audi and Mercedes-Benz AG, manufacturers of handling and agricultural equipment, foundries and steelworks. The group also co-owns the truck manufacturer Tatra Trucks and the Croatian manufacturer of freight railway wagons Đuro Đaković. The Promet Group's annual consolidated sales amounted to CZK 9.55 billion in 2023.
SKH Group specializes in the manufacture of metal parts for the automotive industry. It is one of two automotive divisions of the Indian Krishna Group, which operates in the automotive industry as well as in real estate, hospitality, and media. It began operations in 2006 when it became part of this group. Since then, SKH Group has been growing steadily, expanding its product portfolio and collaborating with various car manufacturers in India and around the world. SKH supplies parts to leading car manufacturers, including Maruti Suzuki, Tata, Mahindra, Honda Cars, Renault-Nissan, Skoda Auto, Audi, Volkswagen, Porsche, Bentley, and Mercedes-Benz. Currently, SKH Group has 30 manufacturing plants located in all major automotive regions in India, with annual sales exceeding USD 800 million. Krishna Group operates 55 plants across India and, as of March 2025, has achieved annual sales exceeding USD 1.5 billion.