Tata - Marcopolo buses on trial run in Bangalore

The Bangalore Metropolitan Transport Corporation (BMTC) has introduced two low-floor air-conditioned Tata Marcopolo buses in Bangalore city on a trial basis. The two buses have been built at Tata Marcopolo’s plant in Lucknow.

The low chassis, rear-engine buses would be on a trial run for three to six months. BMTC is in the process of phasing out and replacing over 1,000 buses by the close of the financial year. Based on the performance of the Tata buses and the feedback from users, BMTC, with a large fleet of Volvo city buses, will be placing more orders.

“The Marcopolos deployed in Bangalore are low-floor, A/C buses specially designed for city roads. They can seat 35 and have features like air curtains that do not allow heat loss when the bus stops. There is a ramp for the handicapped and a wheelchair-lock inside. There are three destination boards – two outside and one inside – along with a recorded announcement of bus stops. The door has a security mechanism that makes it pull back when a person is entering or exiting,’’ said Lusier Grochot, CEO of Tata Marcopolo Motors.

Tata Marcopolo Motors Ltd. has two plants in India. The first plant is at Lucknow, which is currently operational. The buses supplied to DTC in Delhi and to Bangalore have been manufactured at the Lucknow plant. The second plant, which is the largest facility, is coming up in Dharwad in Karnataka. The Dharwad plant, set up at an investment of Rs. 325 crores, has an annual capacity of 30,000 vehicles. The plant is expected to produce about 2,000 buses in the current financial year. The Dharwad plant is expected to commence production very soon. The Dharwad manufacturing plant will integrate all other plants across India and will have a capacity of 100 buses per day.

Tata Motors had announced formation of a 51:49 joint venture company with Marcopolo to build buses for domestic market as well as for export to Africa and the Far East. The joint venture will produce a variety of buses including 16-54 seater standard buses, 18-seater and 45-seater luxury buses, luxury coaches, and low-floor city buses. The JV will also explore emerging opportunities in Bus Rapid Transit System.

Tata Motors Marcopolo Motors has so far delivered 650 CNG-run buses to DTC and has bagged an order for another 1,625 buses which will be delivered in the next 12 to 18 months.

ACGL starts manufacturing Tata-Hispano luxury buses

Total annual capacity raised to 10,000 units
Automobile Corporation of Goa Ltd. (ACGL), has started building the Tata - Hispano luxury bus at its facility in Goa. The new bus is based on the global design models of Spanish bus body builder Hispano acquired by Tata Motors a couple of years back. The Goa plant has a capacity to manufacture 25 buses a month. Already 50 of these buses have been built and delivered to customers in Karnataka, Andhra Pradesh and Maharashtra. Currently the chassis is being manufactured by Tata Motors and the bus body at the ACGL facility.

ACGL was established in 1980 as a joint venture between EDC, a Goa Government undertaking, and Tata Motors with the primary objective of aiding the economic development of Sattari, a backward area in Goa. While EDC on its part provided finance and infrastructure, Tata Motors, then Telco, agreed to provide technical and managerial assistance to the joint venture.

In 1988, the company identified bus body-building as an important area with considerable export potential and entered into technical collaboration with Fuji Heavy Industries, the Japanese bus coach manufacturer, to establish a facility within the vicinity of the Sheet Metal Division (SMD) factory in Sattari.
Mr. N.R. Menon, Managing Director of ACGL, says: “We have created capacity to manufacture over 10,000 buses per annum, which makes ACGL one of the largest manufacturers of bus bodies in the country”. ACGL now manufactures 16 to 20 buses every day.

In 2007-08 the company manufactured and sold nearly 3,600 buses, out of which 3,500 buses were exported. During the current year the company plans to manufacture about 6,000 buses out of which 4,000 are expected to be for exports and the balance will be for the domestic market. The company’s sale of buses is centered on exports through Tata Motors to markets in the Middle East and Africa. To de-risk the business from over-dependence on export markets, an action plan to aggressively sell buses in the domestic market has been drawn.

The Indian bus market is expected to witness significant growth in the coming years. The inter-city segment will continue to grow at 10 to 15% annually. Many Indian cities do not have any organized public transport system. This offers significant growth opportunity in the future. “Our target is to reach the annual volume of 10,000 buses by the end of 2010”, he says.

ACGL has two units in Goa. The first plant is a press shop and the second unit is for bus body-building. As part of the expansion plans, the main plant of Pressings Division in Goa, which is plant 1, has been partially converted into a bus body-building plant with the installation of a state-of-the-art paint shop. This plant currently has a capacity to build around 2,500 buses per year and will attain the full capacity of 5,000 buses once all the presses are shifted to a new location. This is the unit where the Tata Hispano luxury buses are being built.

Mr. Menon also said: “ACGL is now planning to set up a manufacturing facility in Dharwad, in Karnataka for pressing and stamping. Once this unit is established the pressing unit from plant 1 at Goa will be shifted to Dharwad and the plant 1 at Goa unit will be made into a fullfledged bus manufacturing unit. We also have an additional press shop facility in Pune. The annual turnover of the pressing unit is Rs. 90 crores per annum”, adds Mr. Menon.

To fund the expansion, ACGL went in for rights issue last year and mopped up Rs. 70 crores. This money is being spent on expansion of the existing facility and setting up of new facility in Dharwad. ACGL clocked turnover of Rs. 330 crores for the year 2007-08.
According to Mr. Menon, ACGL has been working on specific segments in the Indian domestic market, the tarmac coaches for airport applications and semi low floor buses for city applications. The tarmac coaches offered through Tata Motors have received a very encouraging response with every airline in the country ordering these buses during the year. All these new low-floor buses of Jet Airways, Kingfisher and other airlines are built by ACGL. More than 100 of these buses have been built in the last few years. The company has also built semi low floor city buses for cities like Indore, Nagpur, Jabalpur.

The Indian bus market will witness exponential growth in the coming years. “We expect demand for buses to continue growing given the infrastructure improvements across the country and the thrust given by various cities on public transportation in addition to rapidly growing demand in the Middle East and Africa”, said Mr. Menon.

Delphi setting up plant in Chennai for automotive electronics

Delphi Corporation has announced the start of construction of a new electronics manufacturing facility in Chennai, with the recent unveiling of the foundation-stone at a special ceremony in which senior Tamil Nadu Government officials were present.

The foundation-stone for the new Chennai facility was unveiled by Mr. Jeff Owens, President, Delphi Electronics & Safety, and Delphi Asia Pacific, and Mr. Ashok B. Ramaswamy, President & Managing Director, Delphi India. Senior Government officials, including Mr. M.F. Farooqui, Principal Secretary to the Industries Department in Tamil Nadu, and Mr. M. Velmurugan, Director - Guidance Bureau, Industries Department, were present on the occasion, as were senior officials from the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and the Tamil Nadu Investment Board.

Delphi will be investing close to Rs. 250 crores in the new plant which is proposed to be built in three phases and is expected to be operational by the end of 2009. This is an important investment for Delphi that expands its product portfolio and manufacturing footprint to more effectively meet the needs of the growing automotive market in India.

Speaking at the ceremony, Mr. Owens said: “The Indian auto sector is an exciting market and has registered significant growth in the last few years. In the future Delphi is expecting continued growth. As one example, the Indian small car segment volume is expected to triple in the next five years and continue strong growth after that. India is a key market for Delphi, and with new technologies becoming a reality every day, Delphi believes that providing a range of safety and electronics products will be the way forward in the Indian automobile industry”.

Mr. Ashok Ramaswamy observed: “Delphi believes in being close to its customers. Chennai is a hub for both the auto and electronics industries and several major automotive OEMs are based here. Delphi is already bringing the entire value stream to its customers in India, with local capabilities in sales, advanced development, product development including project management, hardware and software design, validation, manufacturing and supply chain management. Our new plant in Chennai extends the Electronics and Safety manufacturing footprint to India and increases the Delphi local product portfolio to meet market needs.”

On the 10-acre production site, Delphi can manufacture products for use in areas like security, safety and entertainment & communications. In phase one, the plant will produce immobilizers, body computers, instrument clusters and driver information systems, followed by safety and entertainment products.

Modine India all set to commence production

Modine Manufacturing Company, a global component major and system supplier, will kick-start commercial production at its power train cooling components (PTCs) plant located on the outskirts of Chennai shortly. The first major order for the plant is from the Czech truck manufacturer, AVIA, acquired by Ashok Leyland a couple of years back, for PTC Modules (Radiator + Turbo Charge Coolers).

With an initial 75 employees, Modine’s Chennai facility will serve as a base from which the company can expand its engine and PTC product lines to new markets. This supplements the 2007 opening of Modine India’s engineering and design center, which supports product development activities to meet the increasing customer technology requirements.

The Indian facility which supports Modine’s global expansion initiatives will serve the country’s rapidly growing engine, commercial vehicle and off-highway markets. The plant will also support key Indian customers as the demand for high technology heat exchangers and systems continues to increase, driven largely by tighter emission regulations and the expanding domestic economy. The Indian facility will make heat transfer systems – radiator and charge air coolers and oil coolers for engines.
“We are pleased to be in our facility and continue the preparations for production launch activities scheduled for December 2008”, said Jerry Kapoor, Managing Director, Modine India. “The smooth start-up reflects Modine’s commitment to the region, the excellent co-operation of our local and global employees and our determination to be a major player in this important market. With our manufacturing operations starting shortly, we have begun work on several product launches for key customers. These programs should position us well to serve major Indian diesel engine and commercial vehicle makers and play a significant role in India’s growing economy.”

Modine India has established one of the most modern manufacturing facilities taking into account the best practices adopted in all the Modine plants worldwide. In fact, as everywhere else, the Indian plant has been built and structured as per the Modine Production System (MPS). The emphasis is on the processes, and a great level of flexibility has been factored into the production system considering the fact that it could be multiple product with low volumes, in some cases. The plant has been designed to take care of the company’s requirement at least for the next five years. The material, product and process flow have been clinically dissected at the design level itself.

“The opening of our Chennai facility marks a giant step in Modine’s evolution as a global supplier that can provide technologically differentiated products and systems wherever our customers are located,” said Mr. Tom Marry, Regional Vice President - Asia. “The Indian market offers a very interesting group of local companies who are actively implementing plans to become more international, as well as global companies who are expanding into the rapidly growing marketplace. In both cases, Modine is very well positioned with market-specific products, manufacturing capability and our in country management team to support these opportunities. We look forward to leveraging Modine India’s experience and capabilities.”

Globally, Modine with fiscal 2008 revenues from continuing operations at $1.9 billion, specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Its products are used in light, medium and heavy-duty vehicles, HVAC (heating, ventilation and air-conditioning) equipment, industrial equipment, refrigeration systems and fuel cells. Based in Racine, Wisconsin, the company employs approximately 7,900 people worldwide at 33 facilities in 15 countries.

Modine had initially committed an investment of $14 million on the Indian project. But considering the growing number of orders received and also the future growth prospects, it has invested an additional $2 million on the Indian facility which is part of Modine’s strategic plan to meet global product demand and increase its presence in the expanding Asian market. However, the initial focus will be on the Indian market, which offers enough opportunities. The priority will be to cater to the growing domestic demand. It will look at exports at a latter stage.

Mr. Kapoor also made a specific mention of the professional approach and the outstanding support extended by SIPCOT in setting up the manufacturing facility. “We went through a single window clearance system, and the whole process was so well co-ordinated that we didn’t have to go through the hassles of getting various clearances. We chanelised all our efforts in getting the manufacturing facility and up and running in a record time. At the same time, we made sure that whatever we put on paper was complied with. We want to make sure that there is no policy deviation, and we also made sure that our vendors also complied with this”.

Modine has been working with most of the OEMs, both domestic and international, on their current and future programs. It has already won some significant orders, including the first major order for power train cooling components from AVIA. The company is also working with Tata Motors, Renault-Nissan and Mahindra International.

Globally, Modine is an OEM to most of the vehicle manufacturers. But what is interesting is that the initial orders that Modine India has bagged are more from domestic OEMs and some from international vehicle manufacturers who have set up business in India. This goes to show that the company is not purely depending on its global affiliations. It has worked with OEMs in India and generated business on its own merits, which is a significant achievement.

Initially the company is to start with the power train cooling products like radiators and charge air coolers module mainly for trucks and the next program to be launched by June 2009 will be on the engine side, for aluminium layer oil coolers. “We are bringing in this product and technology for the first time in the country specifically for light diesel engines fitted on light commercial vehicles and passenger cars. In Europe, the market has completely shifted to aluminium oil coolers for small diesel engines. The advantage is quite significant considering the fact the weight difference could be almost 50% lesser than the stainless steel oil coolers”, added Mr. Kapoor.
Globally Modine has very strong business in aluminium oil coolers. The company has sold millions of units in Europe and North America alone. In India aluminium oil coolers are use for the new generation diesel engines which are currently being imported.

When Modine entered the Indian market, the company also announced its plans to enter the bus AC market. It has also acquired a company in Korea which manufactures HVAC systems for commercial vehicles and passenger cars. The company had planned to import components from Korea and cater to the growing demand in the Indian Bus AC market. That project has been dropped, says Mr. Kapoor. In fact, globally, Modine has decided to divest its stake in the Korean venture. “We decided not to move ahead with the bus AC business and let our Korean counterpart handle it directly”, added Mr. Kapoor.

It may not be the best of times to kick-start a new venture considering the global turmoil and the downturn in the domestic auto industry, but Mr. Kapoor is glad that it has happened now rather than a year later when the company will have been in full stream production. Modine India has clearly laid a strong foundation which will help capitalise on the future growth opportunities in India.

Knorr Bremse planning second unit in India for CV braking systems

India to become a global development centre for emerging markets

Knorr Bremse India (KBI) has announced the setting up its second manufacturing facility in Jamshedpur for manufacturing commercial vehicle braking systems. The new facility is being set up to cater to the requirement of Tata Motors’ World truck project.

KB established its business for the Indian market in 2003 in a 74:26 joint venture with the Tata AutoComp Group. The company started commercial production in June 2005, and by June 2006, KBI achieved a milestone of manufacturing 100,000 actuators. KBI is catering to the Indian market by developing modern air braking systems for commercial vehicles. It currently manufactures air dryers, foot-brake valves, hand-brake valves, 4-circuit protection valves, relay valves, quick-release valves, brake chambers, spring-brake actuators and auto-slack adjusters.

“We will be a complete end-to-end provider of braking solutions for the Indian commercial vehicle market by 2010, says Mr. Venkat Potturu, CEO of Knorr Bremse Systems for Commercial vehicles India Private Ltd. Apart from the range of products mentioned earlier, KBI is developing foundation brakes for LCVs and HCVs, which by 2009 will be productionised in India. The company is also developing compressors which are under validation process. In 2009, the company will start manufacturing of these compressors. By next year the company is also planning to export air dryers and automatic slack adjusters. KBI is currently supplying components to Tata Motors and Ashok Leyland.

KBI has an established capacity to manufacture 100,000 air brake systems per annum. The company is also closely looking at the trailer market in India and has supplied a few components to Tata Dutch Lanka Trailers. KBI plans to offer trailer control valves, load-sensing valves, palm couplings, antilock braking systems, electronic braking systems, viscous dampers and air-disc brakes.

The company’s products comply with the Economic Commission for Europe’s ECE R13 safety regulations project. Other interesting products which the company developed and supplied are the pneumatic valves for lift axle, which are fitted on the 8X2 - 3118 model recently launched by Tata Motors.

Mr. Venkat Potturu says that India could well become a development centre for products, particularly for emerging markets like China, Russia and Brazil. In fact, Bendix which is part of the Knorr Bremse Group worldwide, is already working with KBI for developing certain products.

KBI has established the necessary infrastructure and has been rated as one of the best facilities worldwide in terms of product development, testing and manufacturing capabilities. All products are tested for 100 per cent performance and leak test are performed for all products on line. KBI has computerized test rigs to ensure test accuracy and is also equipped with a fully equipped Quality Control lab.

Globally, Knorr Bremse is an OEM to all the global commercial vehicle manufacturing giants, namely, Daimler, MAN, Scania, Volvo and International Trucks. With all these manufacturers setting up their business in India, KBI sees significant growth opportunity. Also regulations regarding safety and emission norms can drive future business for KBI. For example, ABS is a compulsory fitment on long distance buses and Tractor Trailers.

This is one product which will witness significant growth in the coming years. With more stringent emission norms, there will be requirement for more efficient compressors. All these legislations and regulations will drive future business for KBI. The company is also supplying products for the new generation low-floor city buses which have air assisted accessories.

For example, the new iBus developed by Ashok Leyland comes with kneeling function and has some of the parts for critical functions supplied by KBI. In 2007, KBI clocked a turnover of Rs. 75 crores.

KBI and its component suppliers have so far invested Rs. 100 crores. There are plans to invest another Rs. 100 crores in the next few years, depending a lot on how the market shapes up, adds Mr. Venkat.

Carrier bullish on future growth in transport air-conditioning

A recent study on the amount of food and perishable commodities that gets wasted in India every year is equal to what Australia consumes in a full year. In fact, out of the 104 million tonnes of perishabe commodities that gets transported, only four million tonnes are being carried by refrigerated trucks. This offers a huge opportunity for growth of the food transport refrigeration business. The luxury and city bus segment is another major beneficiary in this area. Bus air-conditioning is again witnessing exponential growth in the last few years. To know more about the future growth potential in transport air-conditioning, we spoke to Mr. Ashok Mirchandani, Country Head - India, Carrier Air conditioning & Refrigeration Ltd. (Carrier Transicold Division).

Excerpts from the interview:

Question: How long has Carrier Transicold been serving the transport air-conditioning business in India?

Answer: Carrier Transicold is a business unit of Carrier Corp., a subsidiary of United Technologies Corporation. Carrier Corp., headquartered in Farmington, Conn., is the world’s largest provider of heating, air-conditioning and refrigeration solutions. With 2007 revenues of $14.6 billion, Carrier has approximately 43,000 employees worldwide and operations in more than 170 countries. With 2007 revenues of $55 billion, United Technologies Corp., is a Hartford, Connecticut-based provider of products and services to the aerospace and building systems industries worldwide.

In fact, Willis Carrier invented modern air conditioning 106 years ago, and founded the company that bears his name.

Carrier Transicold has been serving the transport air-conditioning and refrigeration business in India since 1993 and we enjoy a leadership position in the industry today.

Q: Currently what is the product range you offer in the Indian market, buses and trucks?

A: Carrier Transicold offers a full range of products specially designed for high ambient temperatures in India.

For buses, we have a range of split and roof top systems with cooling capacities ranging from 5 kW to 44 kW, for installation on buses carrying 10 to 100 passengers. Carrier Transicold has recently introduced the parallel rooftop concept to India in its AC 136 range, which has powerful cooling and air flow capacity, ideal for high density passenger buses.

For trucks and trailers, we offer a comprehensive line up of reefer equipment for volumes ranging from 5 CuM up to 70 CuM. The Viento and Xarios truck range are commonly used for chilled transportation and are fitted to run from the truck engine. The Oasis range for large trucks comes with its own engine and can run independent of the truck engine. The Oasis range is specially designed for hot desert and tropical conditions and can run in temperatures as high as 55 C. We also provide state of the art refrigeration equipment for trailers up to 40 ft long. Both single temperature and multi-temperature options are available for trucks and trailers. All these products are designed to provide strong, reliable performance in hot, dusty ambient conditions and offer unmatched pull down and cooling efficiency.

Q: Can you give a glimpse of the current scenario in transport air-conditioning industry – trucks and buses? What is the growth rate in the last few years and future potential it holds? What is the level of penetration in India for truck and bus air-conditioning systems?

A: The bus air-conditioning business in India is witnessing an exponential growth. The Golden Quadrilateral highway network and the introduction of fully built luxury buses by large OEMs, as well as the entry of foreign bus manufacturers, has led to a quantum jump in the quality of buses. More and more passengers are discovering the comforts of air conditioned bus travel in city transport and in intercity travel, and passenger expectations are rising. This is also directly related to our overall expectation of air conditioning in homes, offices, cars and shopping centers.

The penetration level of bus air-conditioning is approximately 4-6 per cent, which is low by international standards, but has increased from less than 2 per cent in a period of the last 5 years and is likely to reach double digits soon.

The penetration of refrigeration in trucks is very small. Industry estimates that annually approximately 104 million tonnes of perishable produce/product are moved in the country. Out of that around 100 million metric tonnes goes through the non-reefer mode and the remaining four million metric tonnes goes through the reefer transport.

As is well known, India is the second largest producer of fruit and vegetables in the world. However, approximately 35 per cent of this produce is wasted due to inefficient methods of storage, handling and transportation. There is a growing awareness in industry and government of the need to develop the cold chain for food across the country and several initiatives are in the process of being firmed up.

Both bus air-conditioning and truck refrigeration are poised to grow 20-25 per cent over the next few years.
Q: Currently the major growth is coming from Bus air-conditioning business. What is Carrier’s presence in the bus air-conditioning segment and how do you see future growth potential for your products in this segment?

A: The last five years has seen the air-conditioned bus market grow more than 20 per cent. Carrier enjoys a leadership position with a significant market share. We are confident that this growth will be sustained and will continue with our investment plans. We are setting up a state of the art engineering/R&D center at Gurgaon to be ready in a year’s time. We are committed to offering new products to our customers and are working on the localisation of a new range which will be introduced mid-2009.

Q: How is Carrier’s presence in the truck air-conditioning segment? What is driving demand in India for truck refrigeration market? Do you have offer solutions for the complete range of products – refer boxes mounted on rigid trucks, refrigerated containers mounted on semi trailer?

A: Carrier is the Global leader in truck and trailer reefer business and our products have been proven in extreme hot countries like the Middle East. We constantly invest in R&D to offer the latest technology to our customers. In India, we hold a strong leadership position and a significant market share. We support this fleet with our large network of service dealers and parts distribution. Our products cover the complete range of customer requirement from the smallest distribution van to large 40ft trailers for temperatures from -30 to +30 C in both single temperature and multi temperature versions. Carrier offers products tested for operating at +55DegC.

Q: Who are the major OEMs you are currently working with? Have you been chosen for any of the major projects that are coming up - like the DTC tender?

A: Till recently bus air-conditioning in India was a retrofitted piece of equipment, however now most OEMs have introduced fully built AC buses and are also entering the fully built refrigerated truck business. We are working with almost all major OEMs in India both for Bus and Truck projects. Our Application engineering team works on all technical and design aspects of interfacing the air-conditioning system with the vehicle engine and body.

Our bus air conditioning equipment is used by almost all State Transport Corporations and our truck refrigeration equipment is also used by virtually all major logistics and food companies. We are working on several specific customization projects with large commercial vehicle manufacturers; these projects are at an advanced stage and we will comment on them at the appropriate time.

Q: How do you see competition from cheaper solutions being offered by Chinese and Korean brands? What advantage does Carrier bring to customers in India compared to other brands?

A: Like any other fast growing industry the mobile AC and refrigeration industry is also witnessing entry of several low price competitors, which are imported by trading dealers and these offer entry level attractive pricing. However, Carrier has a versatile and talented application engineering team and we offer customized solutions, specially adapted to Indian road and ambient conditions. We also provide strong parts and service support through a countrywide network of service dealers. We believe after sales support is most important in the commercial vehicle industry, particularly where passenger comfort and perishable cargo protection is critical, and this underlines our market approach and helps us to sustain our leadership position.

Carrier has been one of the pioneers in the fields of transport air-conditioning and in cold chain development. We are proud to manufacture this equipment locally in India, and our strength lies in adapting products to suit Indian conditions, engineer them on the vehicles and support them with our after-sales team. We will also continue to bring the latest global models into India. No matter how demanding the application, Carrier will specify, design, install and service the right customized equipment.
Q: How about the sales and service network of Carrier Transicold in India?

A: Our manufacturing facility is located in Gurgaon, on the outskirts of New Delhi and the India sales and distribution Head office is in Bangalore. The Regional Offices are in Delhi, Mumbai, Bangalore and Kolkata. We also have sales offices at Chandigarh, Pune, and Chennai.

Our Service Dealer network includes more than 20 company technicians and 60 Service Dealers spread in all major cities in India, primarily along the main highway routes.

Q: What is the level of manufacturing you do for the transport air-conditioning products in India. Is it completely manufactured in India? What is the level of indigenisation in these products?

A: All models for bus air-conditioning for domestic application are manufactured out of our Gurgaon factory. The units’ designs are standard across the world and sourcing of components is done based on quality and volume availability from across the globe. The components selected have to pass stringent quality and life cycle tests, etc. Presently, critical components and performance parts such as compressors, blowers, refrigerant hoses and control systems are imported from Carrier Transicold suppliers and factories abroad. We are committed to sourcing components and parts from the most economical sources anywhere in the world.

Q: What is the total investment made so far in the existing manufacturing facility and what is the current manufacturing capacity (in units)? I do understand that you are planning to set up another facility for Carrier Transicold. What is the additional investment and capacity planned?

A: The existing manufacturing facility in Gurgaon caters to the complete basket of Carrier products in India which gives us a lot of flexibility in terms of production capacity. Since all Carrier business units are growing there are plans to setup an additional facility and Carrier is actively exploring the various options.

Q: Is Carrier planning to use India as a base for manufacturing and exporting products to nearby markets?

A: Yes, several India manufactured products would be available to other Carrier markets in Asia and, eventually, all over the world.

Q: Can you give a brief on the engineering centre in India of Carrier Transicold and the kind of work they do in India?

A: The engineering center will be focused on latest developments in air-conditioning, heat exchangers, energy efficient systems and alternate concepts such as electrically operated units and environmentally favourable refrigerants to name a few. The engineering centers are in Gurgaon and an application engineering group also operates out of Bangalore. Our engineers have diverse disciplines, backed by state-of-the-art drawing and design facilities. This center ensures seamless transfer of technology from other Carrier sites around the world. As I mentioned, a new building is coming up to meet the expanding needs of our industry.

Q: Apart from transport air-conditioning systems, which are the other segments you are looking? Also for the transport air conditioning business, apart from India, which are the other markets you are responsible for?

A: The focus of Carrier Transicold India is bus air-conditioning and truck refrigeration for India and neighbouring countries such as Sri Lanka, Bangladesh and Nepal. The air-conditioned bus business is still at an early stage of growth. The refrigerated transport business is part of a larger Cold Chain, which is still weak and fragmented and Carrier is part of several initiatives to increase the penetration of these business in the Indian sub-continent.

Carrier also has a strong leadership position in room air-conditioning as well as air-conditioning of large buildings and projects. We recently won the contract to air condition the new terminals of the Delhi International Airport, one of India’s largest and most prestigious air-conditioning contracts. Carrier manufactures commercial refrigeration equipment for the food and the retail industry. We also design and install large cold storage facilities for the food industry.

TSI to offer global transportation solution

Lohr JV rolls out first vehicle carriers
Transport Solutions India Ltd. (TSI) is emerging a significant player in providing transportation solutions for the road transport industry. In just a couple of years since inception, TSI has established a name for itself in the tipper and trailer segment. With a few joint ventures for providing transportation solutions of European standard, TSI is collaborating with some of the best names in the world, including Lohr of France.

Mr. Anand Singh, Chief Executive Officer of TSI, said: “We are aligning ourselves with the best global manufacturers in the respective product segments. Lohr is the largest manufacturer and a global leader in the car and truck carriers market.”

TSI has formed a 49:51 joint venture with Lohr Industries, France. The new company, Lohr India Automotive Private Ltd., in which Lohr will hold a majority stake, will invest INR 500 million and set up a green field facility at Chakan near Pune. With the help of Lohr’s expertise in design and technology, the venture aims to offer a superior product that can carry more vehicles in each carrier, meeting Indian legislation requirements. In fact, recently Lohr India rolled out its first few products in the Indian market and these were truck and bus chassis carriers. With almost all global vehicle manufacturers setting up production base in India, Lohr has decided to follow them, many of whom are its customers, to India.

Mr. Anand said: “In our interactions with our transport customers, OEMs and logistic companies, we found a huge gap between their requirement and the product available in the market. We identified that efficient transportation for finished vehicles like cars, and even trucks in the future, will be an important market in the Indian automotive logistics industry. Currently 1.5 million cars are manufactured in India and this is expected to double in the next 5 years. All these vehicles manufactured will have to be transported and distributed from the factory to various locations across India and abroad.

“On an average a vehicle carrier in India carries 3 to 4 cars on a single deck and 8 cars on a double deck. This gives an idea of the number of car carriers that would be required to transport 3 million cars. It is not just transporting them, but you need to do it in the most cost effective, efficient and the safe manner. This is where global companies like Lohr can offer their expertise”, added Mr. Anand.
Lohr India is introducing two new transport equipments to meet the Indian road and logistics industry requirement with the latest design and technical features. First is the SRTC model for transportation of new heavy vehicles like trucks, bus chassis, tractors, earth-moving and excavation equipment and all types of commercial vehicles. The semi-trailer is designed to maximise transport of heavy duty vehicles like tractors, truck chassis, bus chassis, and all other types of heavy commercials. Alternatively, the equipment can also carry light commercials, SUVs, 4x4s, cars and lifting platforms operated by hydraulic cylinders with special locking devices.

Today, when a truck chassis rolls out of the factory, it is driven on road upto the bus or truck body building facility. Typically a chassis from Ashok Leyland in Chennai will be sent to, say, Jalandhar, to build the bus bodies. Driving an open chassis on the main highway is highly unsafe. Moreover, a new vehicle would have already run 3,000 kms before it reaches the customer. The Government will very soon bring in a regulation whereby truck chassis will have to be transported using a truck carrier. Lohr is a leading manufacturer of truck carriers worldwide. Once mandated this will offer a huge opportunity.

Globally all truck chassis are transported on truck carriers. A typical truck carrier can carry upto 3 Volvo FM truck chassis. In fact, the first potential customer identified for this product is MercedesBenz for transporting bus chassis from its plant in Pune to its bus body builder in North India. The company is working on a design wherein two chassis can be carried one way and on return a fully built bus can be transported on the same carrier.

The second model chosen for the Indian market is SHR. This trailer is designed to maximise transport of all types of cars, SUVs, 4x4s and light commercials. It is fully covered with sliding armed tarpaulin to ensure safety and protection to the loaded products as well as personalised branding.
The trailer has tracks of perforated non-slip metal plating enabling wheel-chocks and wheel straps anchoring every 50 mm. It has frame with external beams and bolted sides. The upper platform which is the main deck is adjustable by screw lifting systems driven by hydraulic motors. In the lower position, the lifting platform is articulated at the front of the running gear and is adjustable by two hydraulic cylinders with manual locking. With driving tracks on the bottom of the chassis, it has loading ramps with driving tracks and dedicated storage in the back chassis. It has also a special set of ramps for bus chassis loads and vehicles sensible to loading angles.

Mr. Phillipe Fortmann, Managing Director of Lohr India, says the trailers that transport passenger cars in India do not comply with legal stipulations. “The length of a trailer should not be more than 18 metres and the maximum height should be 4.75 metres. The majority of the car-carrying trailers exceed the stipulation to carry fewer cars. As a result, brand new cars suffer damage during transportation to the dealers’ showrooms, requiring repairs and also impose additional costs on transport operators, he says. While meeting the legal stipulations in terms of length and height the trailers Lohr’s trailers have a higher capacity to carry more cars”.
Lohr is quite serious about the business opportunities in India. The company has spent considerable time research and has identified the customer and market requirements clearly. It feels there is a genuine requirement in the market. The Indian market will mature with the entry of global vehicle manufacturers and logistic companies, who will never want to comprise on the quality of the product or their service.

Lohr believes that the demand for quality car and truck transporting equipment will rapidly increase. It globally caters to most of these vehicle manufacturers and logistic companies and believes that these will definitely look at using Lohr’s products in India. In fact, even companies like L&T are in talks with Lohr for providing transportation solutions for their products. Currently most of the vehicles are transported either on a flat bed or low bed trailers.

TSI’s vision is to be recognized as a truly global, complete road transportation solutions provider, bringing in more innovative, safe and quality solutions to the industry. Its mission is to identify the gaps and requirements of the Indian transportation industry and address the same by bringing in the best available technologies worldwide.

Jagadish Bhat appointed MD of Hyva India

Mr. Jagadish Bhat has been appointed Managing Director of Hyva India Pvt. Ltd. He will replace Mr. Sudhir Prabhu who has been instrumental in establishing its operations and consolidating the company’s position in India.

Mr. Sudhir plans to return to the Netherlands at the end of 2008 after being with the Hyva Group for 18 successful years.

“On behalf of the Hyva Group I would like to wish Sudhir good health and success in his future plans. I would also like to extend a warm welcome to Jagadish. He is a proven, dynamic manager, fully capable of taking Hyva India to the next level and making its transition from good to great”, said Mr. Louwrens Dijkstra, CEO of the Hyva Group.

In his previous role, Mr. Jagadish served as the Vice President - Manufacturing & Engineering at the German firm Schwing Stetter in Chennai. He has extensive experience in engineering and sales and holds a Bachelor’s Degree in Engineering from the MSR Institute of Technology in Bangalore.

Mr. Jagadish took up his new assignment with Hyva on October 1.

HYVA India’s success story

Mr. Sudhir Prabhu, the architect of Hyva’s success in India, looks back on the journey so far
The name Hyva has become synonymous with high quality tippers in the Indian market. Hyva, a prominent global player in tipper hydraulics, is India’s leading manufacturer of front-end hydraulics and tippers. It has in many ways been the leading provider of new generation transportation solution to the Indian market. The person who has been responsible for Hyva’s success in the Indian market and who in many ways has been the face of Hyva in India is Mr. Sudhir Prabhu, Managing Director of Hyva India (Private) Ltd. After spending close 12 years establishing the Indian business, he is now moving back to the Netherlands and the mantle of taking Hyva India ahead is given to Mr. Jagadish Bhat (formerly with Schwing Stetter).

In a recent interview to MOTORINDIA, Mr. Sudhir Prabhu traced back the history of Hyva in India and on how the company has come a long way from being a manufacturer of tipper hydraulics to becoming a complete transportation solution provider.

“In the 1990s when I visited India to explore business opportunities for Hyva, the tipper manufacturing industry in India was in its infancy. There was shortage of 6x4 vehicles, and the existing tipper manufacturers were not having much experience in designing and manufacturing tippers for this segment. The fully built vehicle (FBV) concept was not popular as it was not adopted by the OEMs. Globally, Hyva had the expertise of designing and fabricating tippers and hydraulics in largescale and therefore it started manufacturing tippers apart from the hydraulics and offered it as a package. During 1997-99 there was no market for front-end cylinders at that point and our imported tipper hydraulics were 40 per cent costlier than the products available in the market”, says Mr. Sudhir Prabhu.

Keeping in view the growing need of fully-built solution for the country’s leading truck manufacturers, Hyva started its tipper building activity in India in 1998 for the Swedish truck giant Volvo India, and soon the company got the recognition as a high quality tippers & tipper hydraulic supplier capable of delivering durable products for the tough mining segment.

The success story replicated for the country’s largest truck manufacturer Tata Motors and Hyva Tippers made its strong presence in the multi-axle tipper segment for construction and road development projects. Thanks to the Golden Quadrilateral Project, Hyva tippers soon became highly visible on Indian roads. Apart from Volvo and Tata Motors, today Hyva builds tippers for all leading truck manufacturing companies, namely, Ashok Leyland, Mercedes India, Eicher Motors, AsiaMotor Works, MAN Force and Scania.
Hyva tippers have been deployed on tough terrains in mining areas and also for fast developing road construction and irrigation projects. In keeping with the varying needs, Hyva India has developed almost 30 different types of tippers from LCV Range (4 t - 7 t GVW Trucks), MCV Range (for 16 T GVW Trucks) and HCV & Super HCV Range (25 Ton and above).

Apart from the standard tippers, Hyva has supplied side tippers (2-way or 3-way) which are suitable for hilly terrains, narrow roads as well as rural roads. It has also introduced ribless body for its widely popular 14 cu.m. and 20 cu.m. box. These new generation tipper bodies ensure less body weight, resulting in higher payload and easy flow of materials.

Mr. Sudhir Prabhu said: “Our target is to be a complete transport efficiency solutions provider and cater to growing and varying demands of our existing and future customers. We have provided European quality products at Indian price”.

For the Indian tipper market, Hyva supplies the complete hydraulics for tipper trucks or tip trailers, in globally accepted top quality hydraulic components like power take off, pumps, tipping valve, air control valves, etc. These components are either manufactured at the Hyva plant or designed and developed for the company by its worldwide supplier base.

The company also has hydraulically operated load covering system called MULTIKAP for its tipper range. Considering growing need of environment friendly tippers, this products has got a wide application possibility in India.

Hyva has three manufacturing facilities for tippers. The first unit is at Navi Mumbai, the second in Jamshedpur, and the third in Bangalore. The proposed fourth unit is coming up at Pithampur. All the four units are strategically located in close proximity to the OEM customers.

Hyva India has an aggregate installed capacity to manufacture 2,200 tipper units a month with an annual capacity of 26,000+ units. In the tipper segment, the company has been traditionally focusing on the 6X4 and 8X4 heavy-duty tippers. But now with persistent demand from OEMs, it is planning to manufacture 6/8/10 cu.m. tippers on 4X2 chassis. So far tippers on these 4x2 chassis were built only for Tata Motors’ export vehicles.

In fact, another interesting aspect about Hyva’s business in India has been in bringing global technologies into India by partnering with the best in the world. Hyva is representing many leading brands in India, to name a few Hydraulic Tail Lift (Dhollandia, Belgium), Bulk Compressor (Jin Heung, Korea) and Power Pack (OMFB, Italy).

In 2006, Hyva (India) signed transfer of technology agreement with the UK-based Dennis-Eagle for producing Phoenix 2, garbage compactor for Indian and export market. Hyva India is also manufacturing fifth wheel coupler in technical collaboration with George Fischer of Germany. Incidentally George Fischer brand has been acquired by SAF Holland. Hyva has established robotic welding facility for manufacturing fifth wheel couplers. After gaining the experience as well as the know-how in the robotic welding, the company plans to introduce elaborate robotic welding systems for tippers as well.

The company will market the garbage compactors locally as well as supply it to other countries through Dennis Eagle. “We are already executing an order from Dennis Eagle compactors for 60+ units for the Bahrain market, which will be executed by the end of the year. We have decided to use India as a manufacturing base to cater to the other global markets of Hyva. We have identified components like components of the Hyd. tail doors, truck mounted cranes, fabricated items of truck mounted cranes, etc. We will also start manufacturing double acting single stage cylinders in India”. Recently Hyva has acquired Technomet Company in Italy, a leading manufacturer of double acting single stage cylinders, added Mr. Pradhu.

As per the study by Hyva a few years back, it is estimated that the Indian market would need 90,000 tippers by 2010. Hyva has the capacity to manufacture 25,000 tippers, and hence there is enough room for all tipper manufacturers.

In 2007, Hyva’s turnover was Rs. 345 crores and for 2008 the target is Rs. 520 crores. Globally out of the total Hyva Group business, Indian business contributes close to 20 per cent.

In a span of 12 years, Mr. Sudhir Prabhu has established Hyva as the leading manufacturer and supplier of quality transportation solution company in India. He has built a strong foundation for Hyva’s business in India. Of course the challenges are obvious, considering the existing state of the economy. Despite all these challenges Hyva will continue to remain in the forefront by providing industry leading solutions.

Hendrickson air suspension for AVIA trucks

AVIA’s product range now includes factory-fitted air suspension, designed and manufactured by suspension expert Hendrickson Europe Ltd. Hendrickson’s proven HAS drive axle suspension was delivered to AVIA a few months back, to be fitted onto its 12t gvw D120 vehicle.

The D120 rigid truck is designed primarily for distribution applications. Replacing the steel suspension with HAS has not only improved ride comfort for the driver, but offers better protection for the load carried and reduces the risk of fragile packages being damaged.

Fitted with an electronically controlled air suspension (ECAS) package, including a remote control, the driver is able to adjust the loading height – a major benefit during loading or unloading at docking bays or loading ramps. Furthermore, it makes the D120 suitable for demountable bodies.

Fitment to the AVIA D120 tractor also makes coupling and uncoupling to semi-trailers a quick and easy operation.

AVIA and Hendrickson have worked closely together to ensure they provide the best suspension system for this application to customers and for drivers.

Hendrickson, a member of the Boler Group, is a premier global manufacturer and supplier of truck, tractor, bus and recreational vehicle suspensions and heavy duty springs; trailer suspensions, controls and non-integrated axles; truck and trailer lift axles; and bumpers and trim components to the commercial transportation industry.

Hendrickson, based in Itasca, Ill., USA, continues to meet the needs of the transportation industry even after 95 years.

Volvo launches India’s first multi-axle bus

In keeping with its philosophy of setting standards and providing industry leading transport solutions, Volvo recently launched India’s first multi-axle coach, the Volvo 9400 B9R, at the Volvo Bus Technologies plant on the outskirts of Bangalore. The first six buses where delivered to the customers on the occasion.

The launch of the multi-axle bus is a big step forward in the Indian bus segment, which is now on par with the global industry in terms of technology. As in the case of the passenger car segment, introduction of the Volvo 9400 in India was made just a few months after its launch worldwide. This confirms Volvo’s commitment to the Indian bus market, says Mr. Akash Passey, Managing Director of Volvo Bus Technologies.

“With the launch of this model, Volvo now has three standard offerings – 4x2 inter-city bus, city bus and 6x2 inter-city bus – for the Indian market. With this new model’s launch Volvo is broadening its product offering and choices for the customers and the passengers”, adds Mr. Passey.

The new Volvo multi-axle bus is 13.7 meters length, which is close to 1.7 meters longer than the existing Volvo B7R inter-city bus. The additional length means additional capacity, and this makes business sense for the operator. A normal B7R had the capacity to carry 45 passenger whereas the multi-axle coach can carry upto 53 passengers. For an operator, the additional 8 seats, if booked , can easily take care of the fuel cost of the trip, says Mr. Passey. This is just one of many advantages of the new bus. Ofcourse, it comes at a slightly higher price of Rs. 85 but Volvo believes that the new B9R is cheaper when it comes to per seat cost.

The new Volvo B9R comes powered by a 9-litre Euro III common rail engine. The 340 hp engine is the most powerful on Indian buses and features the Volvo Engine management system (EMS2) which provide for precise and efficient engine control. The engine control module takes in data from several sensors on the engine and the vehicle, compares current readings with stored parameters and adjusts fuel quantity and injection timing accordingly. It is integrated with the bus electronic system and permits communication with the driver via information display on the dashboard. This helps in efficient engine management and scope for diagnosis and fault tracing.

The B9R is fitted with 6 speed ZF gearbox with inbuilt Voith hydrodynamic retarders. It has a turning radius of 10.5 meters compared to the B7R which is 10.25 meters, which is very good considering the fact that the new bus is nearly 1.7 meters longer than the B7R.

Since it is a multi-axle bus, there are two axles in the rear. One is a powered axle and the other is dummy or a pusher axle, similar to the one on the 6X2 trucks. But the advantage for the traveller is that the B9R comes with 8 air bellows, which is 2 in the front and 6 in the rear compared to a normal bus which has only 2 air bellows in the rear. This makes for excellent driving experience, particularly on the rear end of the buses. The B9R also comes with double acting hydraulic telescopic shock absorbers, 2 front and 4 rear air & brake systems disc brakes combined with electronic braking system which controls the ABS and ASR functions.

In the seven-year history of Volvo buses in India, the company has helped bring in complete shift in the way this business is being conducted. Customers are becoming more corporate and Volvo has helped add to their status. Even within the segment of operators who own Volvo buses, many of the small operators who owned 2 to 3 Volvo buses have moved out by selling it to bigger operators. This has resulted in the emergence of a handful of key operators who run fleets ranging from 50 to 300 Volvo buses. This also makes the operations more viable in the long term.

Today Volvo has over 2,000 buses, both coaches and intercity buses, plying on Indian roads. Volvo has practically covered all major routes across India in the coach segment and in some of the routes, its has close to 100 per cent share. A typical example would be the Mumbai-Pune expressway route wherein over 200 Volvo buses are running and there is a Volvo bus leaving every 30 minutes.

The Volvo B9R is clearly generations ahead compared to the other buses manufactured in India. Volvo set standards in luxury bus segment by launching the B7R in 2001. The name Volvo has become synonymous to luxury bus travel in India. Tata Motors and Ashok Leyland have been working on products which can compete with Volvo in the top end but haven’t gained significant volumes yet. Mercedes has recently launched its luxury bus but it will take a longtime to establish itself in the market.

Given this scenario, Volvo has already moved to the next level of launching its multi-axles buses. It clearly shows its commitment to the Indian market and its clear vision to set high standards in the segment in which operates.

Volvo has already bagged orders for 20 multi-axle buses, of which 6 were delivered. The first few buses were delivered to some of its key customers including Kesineni Travels, Sharma Travels and Neeta travels. Volvo has priced this bus at Rs. 85 lakh (ex-factory). The bus features Electronic Brake System, a technology that ensures the highest safety for passengers and driver along with various safety features like frontal impact safety, roll-over protection among others.

“For the year ending December 2008, Volvo is likely to register 120 per cent jump in sales to 450 units over 2007 and for 2009, it is expecting a growth of 25 per cent. It plans to ramp up its production capacity to touch 1,000 buses by 2010, Mr. Passey said. Volvo has established over 38 service workshops across India and has trained over 8000 drivers across India.

ASP joint venture with Kaufil

ASP Sealing Products Ltd., a leading manufacturer of EPDM weather-strips, has recently signed a joint venture agreement with Kaufil Sealing Technologies of Spain, under which Kaufil has acquired a share in ASP. Both the companies have agreed to set up a new 50:50 JV in India to manufacture sealing systems for supply to OEM customers. This includes investments in manufacturing facilities as well as design support in the Indian market.

Mr. Rishi Anand, Director - Marketing, ASP, said: “Kaufil is a global leader in sealing systems and is currently OEM to all global vehicle manufacturers, including Mercedes, Ford, GM, Nissan, Toyota, Renault, Volkswagen and many others. With all the major global vehicle manufacturers setting up business in India, it offers a huge opportunity for ASP and Kaufil to cater to their requirements in the Indian market and for their global requirements as well”.

The new JV, ASP Kaufil Private Ltd., will set up satellite plants in major automotive hubs like Pune and Chennai close to the OEMs to ensure ontime supplies. The JV is also looking at the possibilities of setting up manufacturing facilities in overseas markets like Thailand and Russia”, added Mr. Anand.

It’s a win-win situation for both the partners, as the new JV will provide ASP with access to latest technology which will help them serve global OEMs like Volkswagen, Ranault, Nissan which are setting up their business in India and other manufacturers like Mercedes, Ford, General Motors who have already established their business in India. For Kaufil, it provides access to emerging markets like India and helps them in going forward in its internationalisation process and its strategy to attend to global vehicle platforms. ASP will provide Kaufil with a strong platform for manufacturing, access to Indian and global OEMs and knowledge of the local market.

ASP currently has two manufacturing facilities in India. The main facility is in Uttar Pradesh and the second facility which was commenced a year back has been established in Uttaranchal. ASP is setting up a third facility in Pune, close to the General Motors plant in Talegaon. The company is also setting up a design centre and design studio which will be an R&D centre and will help in future product development. The new facility in Pune will be operational by mid-2009.

ASP has been growing at a healthy rate of 40 per cent year on year. For the current year 2008-09 the company is targeting a turnover of Rs. 75 crores and in the next couple of years ASP is targeting a turnover of Rs. 150 to 200 crores, which will include business from the new JV as well, says Mr. Anand. ASP is also in the process of signing two more JVs in the area of hoses. Currently ASP supplies hoses to the industrial segment to companies like IOC, Nalco and Hindalco to name a few. ASP is certified for ISO/TS 16949:2002 certification.

The strength of the ASP is its strong relationships with OEMs, presence in the domestic after market, Railways apart from Industrial & Architectural presence facilitating the company to lead the path of progress.

Delphi bullish on aftermarket business in India and China

Delphi is bullish on the prospects for its after market business in Asia, particularly in India and China. Asia Pacific is forecasted to be the growth market for the global automotive industry in the next 15 years. Vehicle sales in Asia are projected to increase 55 percent in the next seven to eight years and vehicle production will increase 40 percent in the same time period. This surge will surely boost demand for automotive parts and components in the aftermarket. India is certainly one of our major markets in Asia, says Mr. Dominic Seto, Managing Director, DPSS-Asia Pacific.

Question: How is the growth of Delphi’s aftermarket business worldwide and how is the business, particularly in the Asian market which you are responsible for?

Answer: With the creation of the Delphi Product & Service Solutions’ (DPSS) aftermarket operations almost 7 years ago, Delphi’s OE heritage and technological expertise is available to the aftermarket worldwide. Every component that carries the Delphi aftermarket brand is developed and manufactured to the same high-quality standards expected by our OEM customer base, and benefits from the same rigorous engineering, research and development. This enables Delphi to be a leader in product performance using advanced materials and processes to achieve a longer product life and better operating characteristics. In less than 7 years, globally Delphi Product & Service Solutions’ aftermarket operations has gone from less than 10 product lines to more than 40; from a couple of hundred employees to more than 1,500 worldwide.

Asia Pacific is forecast to be the growth market for the global automotive industry in the next 15 years. Vehicle sales in Asia are projected to increase 55 per cent in the next seven to eight years and vehicle production will increase 40 per cent in the same time period. This surge will surely boost demand for automotive parts and components in the aftermarket.

As a world leader in automotive systems and components, Delphi is well-positioned to keep pace with this astounding growth rate. Delphi provides comprehensive product solutions to vehicle manufacturers globally. In fact, our presence in Asia stretches back nearly 30 years. During the period, we have established a manufacturing footprint that includes 15 wholly-owned companies and 19 joint ventures in 9 countries and six technical centers offering a wide-range of research and development capabilities to help global and local OEs compete in the region. We employ more than 13,000 people in Consolidated Operations.

Q: What is the kind of growth you are experiencing globally during the current year and how is growth in the Asian market?

A: Geographic Expansion, Channel Expansion and Product Line Extension are the key words for DPSS’ business growth in the current year.

* Delphi launched the aftermarket brand in East Europe (Poland), Canada, Mexico, Malaysia, Sri Lanka, Thailand.

* Delphi introduced its Delphi Service Centre programme in Europe, South America and Asia Pacific (Australia) this year. This new initiative helps ensure that independent garages are well positioned to meet the increasingly technical challenges they face and are able to benefit fully from opportunities in the service and repair market.

* Delphi is also continuously working on introducing more products to satisfy Asian customer needs.

Q: Specifically in Asia, the factors driving growth in the aftermarket? Which are the major markets for DPSS in Asia?

A: Asia Pacific is expected to be the growth market for the global automotive industry in the next 15 years. Vehicle sales in Asia are projected to increase 55 per cent in the next seven to eight years and vehicle production will increase 40 per cent in the same time period. This surge will surely boost demand for automotive parts and components in the aftermarket. India is certainly one of our major markets in Asia.
Q: Broadly can you give us a description of the product portfolio offered by DPSS? Are you looking at entering new product or service segments for growth?

A: At the stage DPSS’ product portfolio can be categorized into four major product lines:

* Vehicle Electronics – MRA, fuel pumps, oxygen sensors, ignition coils and fuel injectors, ECMs, ignition cable, EGR, etc.

* Thermal – HVAC components such as compressors, condensers, evaporators & radiators; Retrofit AC kits, driers, etc.

* Chassis – Shock absorbers, brake pads, caliper kits, steering column and half shaft and power steering pumps

* Consumer Electronics – car audio, portable navigation and overhead DVD players; And we’re also excited to announce the expansion of our diesel products into the aftermarket channel (Delphi Service Center)

Q: How important is the Indian aftermarket for DPSS globally? What is the kind of growth you are experiencing in India?

A: India is one of Delphi’s most important markets in Asia Pacific and DPSS first launched in India market in 2000. In terms of the growth, we expect significant long term growth in India giving the fact that the new car production is growing by 1.6 million per year, and the car population will expand to over 25 million by 2015. This will provide a significance aftermarket opportunity and Delphi is ready to expand our share in it.

Q: You launched the Delphi Service Centre concept in Equip Auto. Do you plan to replicate similar concepts in India as well?

A: Delphi Service Center will be a global format for service. India will be one of the first markets in Asia Pacific to conduct the concept. Delphi is evaluating the requirements for India market and also discussing with potential partners. We will launch the Delphi Service Center in near future.

Q: Automotive components are getting better in terms of quality, lasts for much longer time and due to better roads there is lesser wear and tear. This has in fact affected the after market business for many products. Do you see this seriously impacting your business?

A: India is growing market and the car population is expected to double between 2008 and 2015. Even with longer life and better quality parts, the overall demand for components will still be significantly higher.

Meanwhile, we are also supplying service and value-added products (AC kit, etc.) These products will be our additional source of revenue.

Piaggio to invest Euro 60 million in engine plant

Mr. Vilasrao Dashmukh, Maharashtra Chief Minister, met Mr. Roberto Colaninno, Piaggio Group Chairman and Chief Executive Officer, in Rome during his recent visit to Italy with a Maharashtra Government delegation from Mumbai.

The Piaggio Group has been having its operations in Maharashtra since last 10 years, primarily for production and marketing of three- and four-wheel commercial vehicles. Piaggio Vehicles Private Ltd. (PVPL), an Indian company wholly owned by Piaggio, produced approximately 155,000 vehicles in 2007 with revenues of Euro 238 million. In the first six months of 2008, PVPL shipped 81,300 vehicles, an increase of 10.7 per cent over the first half of 2007, bringing in revenues totalling Euro 122.6 million, representing an increase of 10.2 per cent. The company is currently the market leader in the three-wheeled commercial vehicle segment in India.

At the Rome meeting, Mr. Azeez M. Khan, Principal Secretary (Industry) of Maharashtra, and Mr. Ravi Chopra, PVPL Chairman and Managing Director, signed a joint memorandum confirming Piaggio’s plan of implementing a major industrial project in Maharashtra as part of its strategy for growth in India and Asia. The proposed factory in Maharashtra to manufacture engines for the company’s commercial vehicles, which involves an investment of Euro 60 million, is scheduled to begin production in 2010.

Maruti Suzuki’s KB engine plant starts commercial production

Maruti Suzuki India Ltd. has just opened its next-generation KB-series engine plant at Gurgaon. The new series engine is yet another significant initiative by the company towards offering the latest technology to its customers.

Inaugurating the plant, Mr. Shinzo Nakanishi, Managing Director, Maruti Suzuki, said: “We are happy to introduce a brand new family of petrol engines for our customers. Maruti Suzuki is the first company to introduce fuel-efficient vehicles in India way back in 1983 and has continuously improved the technologies over the years. Like all Maruti Suzuki technology, this new engine is highly fuel efficient, while offering the best in refinement and performance. It will take the engine technology to the next level in India. The new engine series is also an important step towards attaining the target sales of a million units in the domestic market by 2010-11. The operational capacities of our plants have reached the million mark.”

The KB series engine will be mounted on the forthcoming model, A Star, from Maruti Suzuki. The 998cc engine has been carefully designed to be environment friendly and fuel efficient with its light weight construction and innovative technologies to improve combustion and minimise friction. The smart distributor less ignition (SDLI) system with dedicated plug top coils, high pressure semi-return fuel system and advanced injectors for superior atomization provide uniform and optimized combustion for better performance.

After A Star, the all-new, light-weight engine series will be progressively introduced on other models as well over a period of next 3-5 years. The new engine will also power the export version of the A Star. The company plans to commence exports of this model from early 2009.

The KB-series engine, while fully complying with the prevalent BS III norms, is ready to meet the future emission norms in the country. It meets the Euro V norms for the export model of A Star. The plant has an installed annual capacity of 240,000 engines.

The new engine will be manufactured in the state-of the-art, fully integrated manufacturing facility within the Gurgaon plant. Spread over an area of 20,300 m2, the plant is part of the Rs. 9,000-crore investment plan drawn by Maruti Suzuki and Suzuki Motor Corporation.

The in-line plant layout consisting of casting, machining and assembly processes has a high level of automation, effective material handling and inventory reduction techniques in place, aimed for high operational efficiency. It employs global manufacturing best practices like cold testing and 100 per cent online automated checks to ensure global quality.

ContiTech to manufacture air springs in India

In order to meet the growing requirements in India of air spring systems, including those for rail vehicles, ContiTech is planning to produce air spring systems at its Sonepat plant New Delhi. “The Indian railway market is one of the fastest-expanding markets in which we are active”, explains Friedrich Hoppmann, head of the ContiTech Railway Engineering segment. “We are localizing our manufacturing operations so as to be in a better position to cater for the demand. Also, we are planning to increase annual output substantially.” The company already supplies about half the air spring systems for rail vehicles in India.

India is a growing market for airsprings, both in the rail and commercial vehicle segment. The Indian railways is the world’s largest rail network and is a major consumer of air springs. Currently Firestone has established a manufacturing facility in India jointly with the TVS group and Vibracoutic has a joint venture with the Sigma group for manufacturing suspension components, including air springs. Contitech is the third global company to set up manufacturing facility for air springs.

Operations will be expanded at the Sonepat plant where ContiTech India (Private) Ltd. already makes high-grade products for the car and commercial vehicle industry, among others. “We will be using the existing resources in order to manufacture and assemble air spring systems in India to the usual ContiTech quality level”, stated Hoppmann. The production site will be expanded step by step. Later, there will be a middle two-digit number of employees working here.

India’s railway services are currently undergoing massive change, with railway tracks and rail cars being extensively modernized. ContiTech is benefiting from the upswing thanks to its dominant market position and eleven years of being present in the market. In collaboration with the Indian railway’s own research institute RDSO, the air spring expert will be replacing the cars’ largely obsolete suspension and damping technology with modern systems in the next few years.

At present, local transit system trains in Bombay are being modernized with the help of ContiTech. Via its local partner, Resistoflex, ContiTech is supplying a significant number of air spring systems for the Siemens electric multi-unit (EMU) trains there. In an initial conversion phase, these air spring systems will be installed in existing carriages, and in a second phase, they will be integrated into new vehicles as well.

ContiTech also supplies original equipment to the Indian train company RCF and the manufacturer Integral Coach Factory (ICF). The RCF’s fleet, for example, consists of more than 40,000 passenger carriages and about half a million freight cars. RCF has been equipping passenger carriages with air spring systems since 1997.

SAF Holland keen to tap Indian market for trailer axles

SAF Holland is a global leader in manufacturing components and systems for trailers, semi-trailers, trucks, tractor units, buses and recreational vehicles. The company specialises in trailer axles and suspension systems, fifth wheels and coupling devices, kingpins and landing legs.

In India, SAF Holland has a joint venture with Madras Suspensions Ltd., namely, Madras SAF Holland Ltd., which, with its manufacturing facility in Madurai for air suspension systems for buses and trucks, is already working with Indian OEMs.

Mr. Klaus-Jürgen Stegmann, Vice President - Sales and Marketing, SAF Holland, said: “We are now seriously looking at the possibility of setting up a manufacturing facility for trailer axles in India.” SAF Holland was initially importing trailer axles from its plant in China and selling it in India through Hyva India. It was selling a few hundred trailer axles every year in the India. But early this year, the company decided to deepen its presence in the Indian market considering the infrastructure growth and boom in road construction industry and the exponential growth in the trailer market. The Management Board of SAF Holland has given an in principle approval for setting up of a manufacturing facility in India.

“We are currently examining the possibility for setting up of a manufacturing facility in India for trailer axles, either through a joint venture or on our own. We are already in discussion with a few Indian companies. The preference will be for setting up a facility on its own unless we find a partner who can provide the necessary infrastructure and contacts with OEMs and trailer manufacturers. We are convinced with the market potential, and we should be there in another couple of years”.
Currently the Indian trailer manufacturing industry is high fragmented with only a handful of manufacturers who have reached some scale. But this is bound to change with more organised players and even global players setting up their manufacturing facility in India. Also with the ARAI’s code for Trailer manufacturing on the anvil, the trailer manufacturing industry will get more organised in the years to come.

Global business

Globally SAF Holland is continuing its growth trend even in the 2008 fiscal year. However, the increase in sales and earnings will be weaker than originally forecasted. The determining factors behind this are the repercussions of the financial crisis, the volatile trend for commodity prices, and in particular, the continuing high level of the diesel price. The company is now expecting an increase in sales of up to 5% to around EUR 850 million (previous year: EUR 812.5 million).

SAF Holland has recently completed the acquisition of Georg Fischer Verkehrstechnik GmbH, a former subsidiary of Georg Fischer AG. By acquiring the number two manufacturer of fifth wheels, trilex wheels, and kingpins in the European market, the Company has rounded out its product range in Europe and positioned itself as an international supplier and partner of the truck industry around the world.
“Thanks to our solid business model, we will continue to grow despite the weak environment. A contributing factor will be the commencement of production of axle systems at our North American plant in Warrenton, Missouri, in the fourth quarter. Additionally, the Company has newly negotiated customer contracts with internationally operating manufacturers from China and North America over multi-year terms. With this year’s company acquisitions, we have solidified our unique position as a global supplier and secured additional sales potential in Europe and Asia. We are confident of our ability to continue on the successful path our Company has already begun,” said Rudi Ludwig, CEO of SAF Holland Group.

For 2009, in addition to positive developments from acquisitions and axle production in North America, SAF Holland expects further growth from the Brazilian, Chinese, and Russian markets. The Company already has in hand signed declarations of intent for new large orders from North American and Chinese manufacturers across the entire range of products. This confirms SAF Holland’s strong position as a comprehensive supplier of product systems.