Kamaz in India for the long haul

- By K. Gopalakrishnan

I recently saw a video on Youtube where as part of a military exercise in Russia, a Kamaz truck is dropped from mid-air from an air craft with some parachutes attached. The truck lands on the ground with a huge impact, and believe me, except for the engine cover, which was slightly bent due to the impact, the truck was ready to be driven away. It just goes to show how rugged, tough and reliable Kamaz trucks are.

Russian Truck major Kamaz is known for its rock solid and high performance trucks. No wonder it is the most preferred choice for defence applications, worldover. This DNA of Kamaz trucks is maintained across all its products, be it tippers, haulage trucks, tractor-trailers and buses. Till date, Kamaz has sold close to two million trucks and buses worldwide making it the 7th largest manufacturer in the world. To improve on this position the company has made an entry into the Indian commercial vehicle market in a joint venture with the Vectra Group.

Kamaz Vectra Motors Ltd. (KVML), a 51:49 JV between Kamaz Inc. and the Vectra Group, has established a manufacturing facility at Hosur, near Bangalore, for tippers and heavy trucks. KVML has made an initial investment of $16 million with a capacity to manufacture 12,000 trucks and tippers per annum.

In a way, Kamaz in Russia is like the Tata Group in India. Although held by the government, Kamaz is a conglomerate of 211 companies in its hold manufacturing everything from steel to engines to components to fully built vehicles. It has independent joint ventures with Cummins for engines, ZF for transmissions, Knorr-Bremse for braking systems and many other global companies for components and aggregates. No wonder, Daimler acquired 12 per cent stake in Kamaz, few years back.

Kamaz has prepared a long-term strategy for entry into the Indian market. To start with, KVML has launched 6540 tipper model which is one of the most successful models of Kamaz worldwide with more 100,000 units of these tippers functioning in various parts of the world. The 6540 is a 31-tonner tipper built on a multi-axle chassis of 8X4 configuration with 260 hp engine. By the end of the current fiscal, KVML plans to launch three more products in the Indian market – the current 8X4 model with a longer wheel base for tipping and haulage purpose; a 6X4 Tractor-Trailer model and a 4X2 Tractor-Trailer for haulage purpose.

“Our plan is to stay focused on the medium and heavy duty applications and offer differentiated products from those available in the market today”, says Mr. Denis E. Trifonoff, Chief Executive Officer, KVML.

Currently all major aggregates are being imported from the Kamaz facility in Russia, including engines, gear box, axles, braking systems and cabs. The level of indigenisation is currently around 20 per cent, which includes tyres, wheel rims, batteries and few more electrical components. The tipper bodies are being sourced locally from Hyva and JCBL. Progressively, KVML is planning to indigenise most of aggregates. “From June this year, gear boxes and steering systems will be supplied by ZF in India and braking systems by Wabco-TVS. Our goal is to manufacture a 100% Indian truck by 2012”, adds Mr. Trifonoff.

Globally, Kamaz has identified two strategic markets to fuel future growth, China and India. Mr. Trifonoff says, “We realised that we must be in the Indian market and in the fastest possible time. Also we decided that, in India, we cannot offer a mass market trucks and compete with the domestic players. Hence we identified the heavy duty truck segment. The future belongs to multi axle trucks and we want to establish ourselves as an important player in this segment”.

Currently KVML is identifying potential customers and selling its trucks directly to them. By the end of this fiscal year, the company is planning to establish a full-fledged dealer and service network. “Our target is to establish a strong presence in the Indian market with a 10% marketshare in the medium and heavy duty trucks by 2012. For the current year 2010-11, we hope to sell 1,000 units in the domestic market and 300 for exports”.

The Kamaz 6540 is ideally suited for use in construction of roads & bridges, irrigation canals and infrastructure projects that demand continues and tough duty cycles. The truck is not really intended for deep mining applications, says Mr. Trifonoff. KVML sold the initial lot of 5 trucks in February and the company has bagged fresh orders for 200 trucks. The product has been priced quite competitively at Rs. 32 lakhs including taxes and duties.

Engines

KVML is currently offering two variants, one which comes with Euro 2, 260 hp engine and the other is Euro 3,280 hp engine. Both are Kamaz engines, which are trustworthy, proven engine, performing in hot and tough environment, says Mr. Trifonoff. The company is also offering the customers the option of a Cummins engine (Kamaz has a tie-up with Cummins for manufacturing engines in Russia). Kamaz manufactures its own engines with power rating of 260 hp and above. In the new truck models which the company plans to launch, it will offer 260 hp or 280 hp and upwards.
KVML offers 9-speed ZF manual transmission on the 6540 model. Kamaz has a joint venture with ZF in Russia for manufacturing transmissions. The company also offers Allison automotive transmission as optional in certain models based on the customer preference. Currently transmissions are being imported but from June, ZF is expected to start supplies locally. The trucks come fitted with Kamaz axles for now but the company is talking to Meritor in India for supply of axles locally.

Mr. Trifonoff says: “We are working on a completely new model, which is a 49 tonner 8X4 tipper. This will be completely designed and developed in India using Indian suppliers and slated for launch by 2012. It is a completely new model designed and made in India. Our aim is to offer European technology products at Asian prices”.

Strategic tie-up with BEML

In order to capture the growing markets in Defence, Para-military and Police Forces as also in Mining, BEML & KVML have signed a Memorandum of Agreement for mutual business co-operation and development.

By this strategic alliance, BEML and KVML will develop and supply 4x4 Stallion Type of Vehicles for on-road application besides both companies will also work together in developing products for mining applications.
Globally Kamaz has huge experience in manufacturing trucks for military and defence applications. The product range includes Kamaz 4350 (4x4), Kamaz 5350 (6x6), Kamaz 6350 (8x8), with varying load capacities.

Kamaz has very strong presence in the bus segment too. In fact, a couple of years back, Kamaz had showcased its low floor city bus at the Auto Expo in Delhi making its intentions clear that the company is interested in the Indian bus market as well. The company wants to offer CNG technology particularly for city bus application like Chennai, Bangalore, Delhi. We are ready with our buses and will start participating in tenders soon”, adds Mr. Trifonoff.

Exports

Just like every other Global manufacturer, Kamaz also plans to make India as a hub for exports to neighbouring countries. The company wants export trucks, particularly for countries which have right-hand drive like Bangladesh, Indonesia, South Africa and many other markets. “Our plan is generate 30% of our sales from exports”, says Mr. Trifonoff.
Besides Russia, Kamaz has assembly facilities in 9 other countries including Vietnam in which it has a 70 per cent marketshare in the tipper segment. The company enjoys strong position in Middle-East and Africa.

Kamaz is quite serious about the Indian market. India could potentially become the biggest market outside of Russia for the company. It realises the need to be part of emerging economies and India is the best fit in terms of products and technologies. Of all the new players who are entering the Indian commercial vehicle segment, Kamaz could be a serious player to watch out for.

Suspa’s increasing focus on industrial segment

El-Azzeh takes over as Managing Director

Mr. Murad El-Azzeh has taken over as the Managing Director of Suspa Pneumatics (India) Pvt. Ltd. from Mr. Werner Kleinschmit. A mechanical engineer from Austria, Mr. El-Azzeh comes with years of experience in production. Though relatively new to the automotive industry, he has his passion for automobiles and has been a car mechanic himself.

“In India, the automotive industry is very competitive. It is not just the growth but the speed of change which makes it challenging and interesting. Suspa India is in a transition phase. We have expanded our capacity to 4.3 million gas springs per annum, which is a big step forward for the company. We have a major share of business in the Indian automotive sector, where we have set very high standards in quality and performance and will continue to improve on it”, says Mr. El-Azzeh.

Suspa is a global player in gas springs and dampers, as well as crash management, safety and height adjustment systems. The company operates in two major verticals – Automotive and Industrial. Globally, 40 per cent of Suspa’s business comes from automotive and the remaining 60 per cent comes from the industrial segment.

In India, the business has been a bit different. The prime driver of business for Suspa in India has been the passenger car segment, more particularly the small cars and hatch back which use gas springs on the rear luggage compartment. Today the company has garnered an 80 per cent market share in India catering to the requirements of Maruti, Tata Motors, Hyundai and General Motors. Suspa has recently won the mandate for supply of gas springs to Honda and Nissan.

Mr. El-Azzeh says: “With such a dominating share of business in the passenger car segment, an important area of additional focus for the future would be the industrial and non passenger car automotive segment. We have to take a much stronger approach towards the industrial segment. Globally Suspa is a market leader in this segment and we would like to improve our business in India as well”.

Suspa India is targeting segments like trucks, buses, tractors, construction equipments, gensets and other industrial applications. With the entry of global manufacturers in the above segments in India, the company sees a good opportunity for high quality products. “We are working closely with most of the commercial vehicle manufacturers for the new generation of trucks and buses. We are at the right place at the right time and are confident of growing our business in the industrial segment”, adds Mr. El-Azzeh.

Suspa India is a major supplier of gas springs to JCB, both in India and the UK, TAFE, Fiat, New Holland, International Tractors, Caterpillar, L&T and Mahindra. Most of the tractors exported out of India are fitted with gas springs for lifting the front hood.

Another interesting product segment is the lockable gas springs for seat recliners. Varilock is globally a popular brand of lockable gas springs for seat recliners offered by Suspa. This product is mainly used on seats on buses and coaches and other industrial applications. Currently Suspa India is importing and offering it to a few customers in the domestic market but if it gains volumes then the company will consider local manufacturing.

Despite the recession, 2009 was a good year for Suspa India with a 10 per cent growth as the passenger car segment continued to do well.

According to Mr. El-Azzeh, with increased focus on industrial and the continued growth in the automotive segment, his company is already thinking of further expansion, but a lot depends on how the market progresses. “We need to assess the customer demand for the next few years and if the growth is consistent we will then decide on expansion.”

In view of the prospects of further growth in the automotive business and the focus on industrial business, Suspa India is targeting a 30 per cent growth in turnover in 2010.

Tata Motors PAT up 124% at Rs. 2,240 crores

Substantial increase in CV sales
Tata Motors has reported consolidated revenues, net of excise, of Rs. 92,519.25 crores for the year ended March 31, 2010, posting a growth of 30.5 per cent over Rs. 70,880.95 crores in the previous year. Profit before tax for the year was Rs. 3,522.64 crores compared to a loss before tax of Rs. 2,129.25 crores. Profit after tax was Rs. 2,571.06 crores, a significant turnaround from a loss of Rs. 2,505.25 crores in the previous year.

The consolidated financial performance is not comparable to the previous year on account of the acquisition of Jaguar Land Rover in June 2008.

The company has reported a basic earnings per share (EPS) of Rs. 48.64 in 2009-10 for its consolidated operations against a loss per share of Rs. 56.88 in 2008-09.

Tata Motors’ gross revenue for 2009-10 was Rs. 38,364.10 crores (Rs. 28,568.21 crores). The revenues (net of excise) at Rs. 35,593.05 crores represented a growth of 38.9 per cent over Rs. 25,629.73 crores in the previous year. PBT for the year is Rs. 2,829.54 crores, an increase of 179.1 per cent over Rs. 1,013.76 crores. PAT for the year is Rs. 2,240.08 crores, an increase of 123.7 per cent over Rs. 1,001.26 previous last year (after exceptional item of a loss of Rs. 850.86 crores recognized on redemption of preference shares by TML Holdings Pte Ltd., Singapore, a wholly-owned subsidiary of the company).

Volume recovery led by introduction of new products and strong continued growth in the existing portfolio, continued focus on cost efficiencies and price increases undertaken by the company to combat strengthening commodity prices aided it to grow realizations and deliver double-digit operating margin of 11.74 per cent. Operating profit (EBITDA) was Rs. 4,178.28 crores (Rs. 1,752.44 crores).

Overall economic recovery and a benign liquidity environment along with Government stimulus has driven domestic demand revival during the current year. In the domestic market, commercial vehicles sales increased by 41 per cent to 373,842 units, leading to a market share of 64.2 per cent, up from 63.8 per cent of last year. The growth was well supported by both the medium and heavy commercial vehicles and light commercial vehicles, which grew by 36.5 per cent and 44.4 per cent respectively.

During the year, Tata Motors launched and started sales of the Prima range of globally benchmarked heavy trucks. A number of variants from the Ace family were also introduced. Passenger vehicles, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew by 25.3 per cent in the domestic market to 260,020 units. The market share for Tata passenger vehicles for the period stood at 12.4 per cent.

The company also launched the new Indigo Manza and the Sumo Grande MK II during the second half of the year, which improved the company’s market position in the second half.

The company also ramped up production of the Nano at the Uttarakhand plant, and delivered 30,763 units of the car model during the year. Along with Fiat, the company has a joint market share of 13.7 per cent in the industry.

The Board of Directors of Tata Motors has recommended a dividend of Rs. 15 per ordinary share and Rs. 15.50 per ‘A’ ordinary share each for 2009-10.

Jaguar Land Rover retail sales improved favorably in the second half of the year, after addressing the effects of the global economic turndown and launching new model year products. There was strong recovery in the UK where Land Rover retail sales were up 25 per cent year on year. The Jaguar XF improved in the UK by 28 per cent. China also continued to show significant growth for JLR with Jaguar growing by 38 per cent and Land Rover 55 per cent year on year.

Commercial vehicles

After a sharp decline in sales volume in 2008-09, the commercial vehicle industry recovered with a strong sales growth in 2009-10. Recovery in CV industry was mainly on account of improving economic activity as reflected by improvement in industry production, favourable impact of Government supported stimulus package and overall improvement in the financing environment. Following the severe demand contraction in Q3FY09 triggered by the liquidity crisis and weakness of economic activity, especially in the MHCV category, the auto industry recovered substantially in FY10 and grew robustly at 40.2 per cent over previous year. Robust growth was seen in third and fourth quarter as sales volumes grew at 97.11 per cent and 84.39 per cent y-o-y respectively.

In the recent months, the growth has also been stronger supported by some pre-buying ahead of the expected change in emission norms. Growth in the bus segment has been supported by Government’s increasing focus on JnNURM.

Parallel to the industry, Tata Motors Ltd.’s (TML) commercial vehicle business grew 41 per cent, driven strongly by 43.1 per cent and 55.3 per cent y-o-y growth in the MHCV and LCV bus segment respectively. Strong growth in the MHCV truck segment was due to pick up in growth in the higher tonnage segment. LCV continued to show traction on the back of continued response to Ace truck and its variants. TML gained market share in MHCV segment but lost a marginal market-share in the LCV segment mainly due to loss of market-share in the Ace truck segment on account of new products launched by the competitors which led to expansion of the market.

TML’s market share in the CV segment increased by 40 basis point to 64.2 per cent for the year from 63.8 per cent in 2008-09. Facilitated by recovery in economic growth, availability of finance, easing interest rates and increased freight availability, CV domestic sales volumes increased substantially by 40.9 per cent to 373,842 in FY10 from 265,373 in FY09.

The CVs continued their strong growth and grew by 97.1 per cent and 84.4 per cent in the Q3FY10 and Q4FY10 respectively despite the expiry of the depreciation benefits package in September’09 and partial roll back of the excise duties by 2 per cent during the Union Budget of 2010-11.

An upward trend was witnessed with in the truck market where volumes in the MHCV truck segment increased by 35.9 per cent y-o-y, after a sharp decline of 19.7 per cent in H1, M&HCV truck market rebounded strongly in H2 and industry sales more than doubled over last year to record a hefty y-o-y growth of 136.3 per cent in H2FY10. Mainly led by following factors: i) y-o-y growth in industrial output improved progressively (16.7 per cent in January 2010, 15.1 per cent in February 2010 and 13.5 per cent in March 2010), which increased freight availability in the system, and boosted freight rates; ii) growth in core sector in general, and cement production in particular, increased; and iii) liquidity in the system improved, accompanied by a drop in interest rates. These factors, together with lowbase in H2 of 2008-09, significantly bolstered overall growth in truck market in second half of the financial year.

The LCV truck segment increased by 45 per cent y-o-y during 2009-10, while the LCV bus segment grew by 46.8 per cent higher than the LCV truck segment.

TML’s volume in the MHCV segment increased by 36.5 per cent during FY10 compared to the previous year. Also, TML’s market share in the MHCV segment increased significantly from 61.9 per cent in FY09 to 63.3 per cent in FY10. TML’s volume in MHCV truck segment increased by 35.4 per cent and in bus segment by 43.1 per cent which was higher than the industry bus segment which grew by 23.5 per cent. Sales to both STUs and Private operators have grown over last year though, as expected. On the back of innovative marketing and product strategies TML substantially improved its market share in MHCV bus market – from 44.3 per cent in 2008-09 to 51.3 per cent in 2009-10.

The LCV passenger carrier market witnessed a market growth of 55.3 per cent in FY10 compared to the corresponding period last year driven primarily by the success of Tata-Marcopolo sales in 7-tonne LCV segment, Ace Magic and Winger (4-tonne segment). Tata Motors’ market share in LCV passenger carrier segment increased substantially from 77.6 per cent in FY09 to 82.1 per cent in FY10.

Towards the end of 2009-10 there was some tightening of liquidity, as also an increase in diesel price; however it has not yet had a perceptible impact on demand for commercial vehicles. In the expanding CV market, launch of new vehicles and inventive marketing strategies have enabled the company to strengthen its presence, and increase its market share from 63.8 per cent in 2008-09 to 64.2 per cent in 2009-10. In the commercial vehicle segment pre-buying was witnessed in Q4FY10 in anticipation of the change in emission norms effective from April’10.

Going forward TML plans to launch newer variants of the Ace platforms and new vehicles will be rolled out of the newly established World Truck platform.

Tata Daewoo

Tata Daewoo Commercial Vehicles Company (TDCV), the company’s subsidiary based in South Korea, continued to see improvement in domestic demand while exports came under pressure, resulting in overall sales declining four per cent over the previous year. TDCV’s volumes declined by 4.03 per cent in FY10 and stood at 8,769 units. However, in Q4FY10 volumes increased substantially by 65 per cent over Q4FY09 on the back of good exports recovery.

During the year TDCV launched ‘Prima 10X4’ cargo, Prima HCV 8X4 cargo/dump/mixer and HCV 6X4 cargo. The Prima range is expected to improve positioning in international market.

Bajaj Auto’s new ‘RE’ range of three-wheelers

Bajaj Auto, the world’s largest manufacturer of three-wheelers, has unveiled its new range of “RE” passenger vehicles. Bajaj RE vehicles are already known for their superior performance, exceptional value for money and user friendliness.

The new range of RE vehicles are BS-III-compliant and therefore more eco-friendly. RE205D has been loaded with more features. The powerful 200cc engine with oil cooler delivers more life. RE205D is more comfortable due to improved twin fork front suspension and a comfortable driver seat. It also boasts of twin halogen headlamps and single piece front windshield for more visibility. It comes with a warranty of one year or 40,000 km.

RE205D is available in two fuel variants – CNG and LPG. Bajaj Auto has been the undisputed leader in the cleaner fuel range of CNG and LPG, and the latest offering will only strengthen its position in the market place. With RE205M, Bajaj creates a new category in the passenger vehicle space. The company R&D team has created this unique product to deliver highest mileage and lowest operating and acquisition cost. RE205M offers more mileage – 40 kmpl under actual operating conditions along with more space for carrying luggage. It also incorporates unique features like UJ cross propeller shaft and stronger body, which results in reduced maintenance cost for the customer. The vehicle comes with more leg room for passenger comfort, twin headlamps and single piece front windshield for more visibility, and twin fork front suspension for more driver comfort. In effect, RE205M reduces the cost and increases the earnings for the driver.

RE205D and RE205M will be launched in a phased manner across the country. RE205D will be available at a very attractive price of Rs. 1,27,300 (CNG - ex-showroom Delhi), and RE205M will be available at Rs. 1,36,840 (CNG - ex-showroom Delhi.)

Mr. R.C. Maheshwari, Chief Executive Officer - Commercial Vehicles, Bajaj Auto Ltd., said: “The new RE range will deliver more mileage, more reliability, more durability and more comfort to its customers, which results in more earnings for the driver. Our R&D team has always specialized in developing most efficient drivelines at the lowest cost, which enables us to deliver more for our customers. Bajaj has always been committed to going towards cleaner and greener environment. Launching of the new RE range vehicles across the country in BS-III version, much before the deadline of October 1, only reinforces our commitment towards this initiative.”

RE205D has bigger 200cc engine with oil cooler for better pick-up and improved life span of the engine. Its double headlamps offer better visibility at night. Its twin shock absorbers ensure driving comfort, specially in rough terrains, and easy manoeuvrability.

RE205M offers mileage around 40 km/kg in actual usage condition. Its double headlight, single windscreen and powerful halogen head lamps give better visibility and make it ideal for late night working.

Allison Transmission opens state-of-the-art manufacturing facility in Chennai

- By K. Gopalakrishnan

My first meeting with the Senior Management team of Allison Transmission was at Auto Expo in 2008. The company had just established an office with Mr. Ram Amarnath as the Managing Director of its Indian operations.

In 2007, Allison bagged the first major order from DTC for 650 automatic transmission units to be fitted on the Tata Marcopolo low-floor city buses. This was the just the start of things for Allison in India. The company has been working very closely with all major Indian OEMs and has won some major repeat orders from DTC and fresh orders from other corporations. Having established its presence in the city bus segment, the company is now looking at opportunities in trucks and off-highway segment.

As part of its commitment to the Indian market, Allison has established a state-of-the-art manufacturing facility at Oragadam on the outskirts of Chennai at an investment of $60 million spread across 203,000 sq.ft.

Inaugurating the new facility, Allison Transmission Chairman and CEO Lawrence E. Dewey said: “The opening of the Chennai facility helps Allison Transmission expand its global footprint as well as its presence in India, where demand for Allison’s fully automatic transmissions is steadily growing. City transit bus and off-highway construction vehicles equipped with a broad range of Allison products are presently in service throughout India and are rapidly growing in numbers. In addition, the company is seeing increasing interest from Indian OEMs for additional On- and Off-Highway vehicle applications for Allison transmissions. In India, we see a transportation industry that continues to develop, embraces the latest technology keeps upgrading its transportation system in all facets. The future here is very bright.”

Allison Transmission Inc., Vice President of Operations David Parish, who oversaw the construction of the state-of-the-art facility, described the outstanding safety accomplishments of everyone involved in the project during the ceremony. He said: “We should all be humbled and proud that we achieved our greatest goal. No one was injured in the construction of this magnificent facility.”

The facility is designed to be flexible in the products that it is capable of producing, allowing Allison Transmission the ability to respond quickly to changing market opportunities as they develop globally. The plant was also designed with themes of energy efficiency, environmentally clean, and meets the criteria to be classified as a zero discharge facility, a facility that completely recycles all water used from all the plant processes”.

The new facility will initially manufacture three important drive train components – the sun gear, the ring gear and the pinion gear. These components will then be exported back to Allison’s global facilities for assembling them in the transmissions. In addition to being capable of manufacturing vehicular drive train components, the Chennai facility will also serve as the regional headquarters of Allison Transmission India Pvt. Ltd., housing its executive and regional sales offices. The facility also incorporates design features which will allow it to expand quickly as future marketing opportunities develop. Approximately 300 employees are expected to be employed by the facility once it is fully operational.

Mr. Ram Amarnath, Managing Director of Allison India Pvt. Ltd. in his welcome address, said: “It is a monumental day in the history of Allison Transmission. We are inaugurating the Allison India facility and it is the first wholly owned Allison facility outside of Indianapolis, Indiana. This facility is not just a manufacturing site but will also house all functional and support staff to enhance our capabilities in all stages of the value chain from design and manufacture to customisation and delivery to end user experience. We have established a world class facility with state-of-the-art machinery”.

At the launch of the project, Mr. Dewey and Mr. Parish made it very clear that the Indian facility should be world class with the best safety and manufacturing practices.

Mr. Amarnath further said: “The company’s association with India dates back more than 50 years when Allison began serving transportation companies in the country’s mining and oil field industries. Allison’s presence in India also helped the company establish a network of distributors to support the large volume of its off-highway transmissions imported by global OEMs. In the 1980s, Allison Transmission entered into a technical licensing agreement with Hindustan Motors – Power Products Divisions, now AVTEC, to localise and manufacture Allison’s off-highway series of transmissions in India under the brand name Hindustan Transmissions. Over the years this partnership has provided Allison with business growth in the Indian off-highway market segment”.

He also said: “It is our intent to expand into the medium and heavy duty bus and truck segments, utilizing our comprehensive product line. Allison Transmission’s growth in India has been propelled by fitting automatics into low-floor CNG and diesel buses in Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Nagpur and other Indian cities. As we see Indian commercial vehicle manufacturers expanding in the domestic and global markets, we see great opportunity for Allison Transmission. We also feel that Indian vehicle manufacturers will demand improved safety, productivity, reliability, availability and durability of their products. Allison Transmission has become the automatic choice of commercial vehicle OEMs to meet and deliver these customer expectations”.

Allison also has manufacturing and customization facilities in North America, Hungary, Netherlands, Brazil, China and Japan. As with all its operations – whether in North America, Latin America, Europe, or Asia – delivering on the Allison Brand Promise of an automatic experience with an unrivalled combination of Quality, Reliability, Durability, Vocational Value, and Customer Service is of paramount importance, company officials said.

The company has helped change the driving and travel experience in public transport in India. A city like New Delhi was particularly unpopular for its public transportation till a few years back. But today, the new low-floor city buses have literally changed the landscape. Allison automatics have played a crucial role in this change process. With automatics, there is significant improvement in efficiency levels of drivers and most importantly for the passengers it offers a smooth, comfortable and safe ride. Allison sure has played an important role in the modernisation of public transport in India.

Allison now plans to expand its product offerings to the trucks, off-highway and defence segment. The setting up a new facility in India clearly demonstrates the commitment of the company to the Indian market.

TRF to offer complete transportation solution

TRF, part of the Tata Group, has been on a roll acquiring companies globally and in the domestic market and moving towards its mission to provide complete transportation solutions. The company acquired York Axles in 2007 and Dutch Lanka Trailer in 2009. To complete the process from trailer undergears to trailers and then fixed body applications on trailers, TRF entered into a joint venture agreement with Jasper Industries and Tata Capital to establish Aditya Automotive Applications Ltd.

The company is currently setting up a massive facility in the Tata Motors Vendor Park in Lucknow. In the initial years the plant will focus on fabricating tippers for the medium and heavy duty applications.

Aditya Automotive also fits in with the plans of Tata Motors to establish companies that will provide engineered applications for its trucks. Aditya Automotive plans to set up an engineering centre for product development, testing and validation. It proposes to rapidly move towards design, development and manufacture of fully-built solutions for truck applications, such as load bodies, refrigerated vans, garbage compactors, tankers, etc.

In order to meet the growing demand for its products in ports as well as trailers, Dutch Lanka Trailer (DLT) has set up a second manufacturing facility in Sri Lanka. The new facility at Dankotuwa with an installed capacity to manufacture 3,000 trailers in single shift will also cater to the needs of the global market for both port and road trailers, besides developing products for both categories.

The new DLT plant designed to reduce carbon footprint was inaugurated by Mr. Sudhir Deoras, DLT Chairman.

TRF is now fully geared to offer complete solutions, including undergears, axles for trailers and trailer bodies.

Fuwa targets OEMs for drive axle business

To commission world’s largest axle plant
Fuwa, China’s fast growing trailer axle manufacturer, is all set to launch drive axles targeted at the global OEMs. The company is already in discussions with several Chinese and global OEMs for supply of drive axles for the new generation commercial vehicles.

Says Mr. Scott Tan, International Business Manager of Guangdong Fuwa Engineering Manufacturing Co. Ltd.: “We are also planning to launch axles for off-highway and construction equipments in the future”, he added.

The Fuwa brand owned by Guangdong Fuwa Engineering Manufacturing Co. Ltd. was founded in 1997 and has now become one of the world’s largest trailer axle makers. In just over a decade, Fuwa has grown to become one of the worldwide market leaders. Now it is taking the next step, investing in a new factory that will help double the company’s current capacity.

To further expand the business, Fuwa has invested Euro 150 million in a new state-of-the-art factory in Taishan. As a result of China’s booming economy, Fuwa started out supplying the domestic market with axles, trailer landing gears, suspension systems and other products for trailers. Today, it has a dominant position in the Chinese trailer axle market, with an impressive 70 per cent market share.

“In total, we produce around 1,000 different axles,” says Scott Tan, Fuwa project manager. “For example, in China and in developing countries, there are many poor roads, so the axles have to be constructed with heavy-duty components to perform well even under these difficult conditions, while in the US, where the roads are normally much better, the components used are slightly different. The product structure and configuration varies in different countries based on their applications.”
Fuwa produced 600,000 axles in 2007, and 500,000 each in 2008 and 2009 in keeping with a retracting automotive market. The company also manufactures other products, including 200,000 landing gears and 100,000 air suspension systems per year, some of which are licensed for other well-known brands in the industry.

In addition to being market leader in China, Fuwa has considerable market shares in many regions around the world, including Australia, South-East Asia, South America, South Africa and the US.

The new site in Taishan will be almost double the size of the existing Shunde plant in terms of production, adding another 600,000 trailer axles to Fuwa’s annual capacity, as well as introducing new products, such as drive axles and front axles for trucks.

It will be a top-class factory equipped with advanced machinery from all over the world, including an advanced painting system. The factory set-up is in accordance with European standards and will produce items similar to what it produces in Shunde. Mostly high-end products will be manufactured in Taishan.

In India, Fuwa currently sells trailer axles, landing legs, air suspension systems and other trailer parts through its partner KKTC in Mumbai, the authorised distributor for Fuwa parts in India.
“We are very interested in supplying drive axles to Indian truck manufacturers”, says Mr. Tan. “India is a very important market for us as the road and usage conditions are very similar to China. We believe our product is perfect for the Indian market. We are fully confident of our success in the global market and hope to make an entry into the Indian market as well”, he adds.
Currently out of the total sales, 70 per cent comes from the Chinese domestic market and the balance 30 per cent from exports. Once the new facility is ready, the target is to increase the share of exports to 50 per cent and the remaining from the domestic market.

ArvinMeritor highly optimistic about future

ArvinMeritor has defined six key priorities for 2010. The company believes it is imperative to execute well in each of these areas and has developed specific action plans to achieve strong growth. It will remain focused on rigorous cost management to realize improved operating leverage; continue to focusing on global commercial vehicle and industrial markets; successfully execute as global markets recover, drive innovation, accelerating new products and advanced fuel-efficient technologies; and maintain focus on sustainable profitable growth.

Mr. Chip McClure, Chairman & CEO of ArvinMeritor, said: “2009 was a tough year for the Global economy. Although we saw our markets around the world dramatically drop off last year, as much as 60 to 75 per cent, we never stopped investing in our future. With the steps we have taken to manage costs – in addition to our efforts to secure new multi-year contracts, develop advanced solutions for our customers, and focus talent and resources on strategic segments of our business – we believe we are on track to benefit from future recoveries in the global markets.”

Mr. Carsten J. Reinhardt, Senior Vice President and Chief Operating Officer, ArvinMeritor, said: “We have come out of the recession much stronger than what we had been. We have not just survived the recession but turned ArvinMeritor into a company that is focussed on a very clear market segment, which is commercial vehicles and industrial. We have segmented our company into 3 major segments – Commercial Truck, Trailer and Aftermarket, Industrial”.

On the recovery in global markets, Mr. Carsten said: The North American truck market is recovering fast and although not at record levels but certainly at increased levels from past year and we see that continuing into the next quarter as well. We are very bullish in the longterm and confident that the North American market is going to come back stronger. 2011 we believe will be a strong year and will continue for many years and we at ArvinMeritor are prepared to be a part of that”.

He said: “In Europe there was a deep drop in the commercial vehicle segment and the market went down by almost 70% when the crisis started. The good news is we see Europe coming back. Our factories in Europe have started to ship a good number of our products and we are starting to see a level of bullishness and very encouraged by the signs. It is going to be a gradual comeback unlike in the US, which recovered due to the emission change. It is very difficult to predict as to when we would get back to 2008 levels but we will certainly grow well”.

“In South America, ArvinMeritor is producing at all time record levels. We have never made as many axles as we have made in the month of March 2010. The industry is expected to surpass the record levels of 2008. For ArvinMeritor it is a very important market for brakes, axles, suspensions. We are the market leader in South America and our facility is running in full throttle – 7 days a week, 3 shifts. We are bullish about the growth prospects in this market”, Mr. Carsten added.

Talking about Asia, Mr. Carsteen observed: “India and China are significant markets for ArvinMeritor. Both markets are back to pre-crisis levels. It is very encouraging as it didn’t really take long for both markets to comeback. The plant in China is running 7 days week and important part of the business in China is in the off-highway and construction equipment segment. Overall the global market is doing well so does ArvinMeritor”.
Referring about investments, Mr. Carsten said: “Despite the downturn, we have continued to invest. We have increased our engineering spend by 30%, which is a significant number and a sign that Meritor is back as an innovation leader. We are investing in all parts of the world in brakes, axles, suspensions. We are planning a major launch of innovation of our 17X product line in Hannover in Sept. The new technology will take high efficiency axles to ultra-high efficiency levels. A lot of engineering work is coming out of Europe as the fuel cost is twice as much in the US. There is more drive for efficiency and it an asset for us to be in Europe where the customers are pushing us to improve our technologies. We have announced significant investments in our brake business both in Europe and North America. We are spending over $ 60 million in this business to bring the next generation of brake products both in drum and disc brakes to the global market place”.

New axle launches

ArvinMeritor has announced plans to expand its off-highway business in a big way. The company recently launched two new axles for terminal tractor and all-terrain crane applications.

Fuelling the expansion is a customer-focused strategy that provides unmatched speed-to-market, unique customization capabilities and superior quality and durability – supported by global engineering and manufacturing resources, in addition to a well-known and trusted aftermarket parts and service network.

“We have a well-defined strategy to grow our off-highway business to meet the forecasted demand in the coming years,” said Mr. Tim Bowes, President of Industrial and Asia Pacific for ArvinMeritor. “We are investing in product design and development, as well as manufacturing capacity, while simultaneously executing successful production launches for our growing customer base.”

Using a modular design approach for carriers, wheel-ends and braking systems, the company is engineering products that offer its customers’ customized solutions – and doing so with lead times the company believes to be approximately 50 per cent less than its competitors.

“With our long history of expertise in designing and manufacturing heavy-duty axles for commercial vehicle customers, and the strong off-highway capabilities we have developed in China, we are prepared to grow this business and seize global market opportunities,” added Mr. Bowes.

The company manufactures its off-highway drivetrain components in Xuzhou, China, a joint venture with its long-term partner, Xuzhou Construction Machinery Group (XCMG), and at its manufacturing facility in Newark, Ohio. ArvinMeritor is the leading producer of off-highway axles in China with a strategic priority to expand in all major regions of the world.

Firestone, the undisputed leader in air springs

- K. Gopalakrishnan
I recently visited the Firestone air springs manufacturing facility in Williamsburg, Kentucky. This is the world’s largest manufacturing facility for air springs with a capacity to turn out 10,000 air springs every day. Thats a mind boggling figure considering the fact the total market size for air springs in India is less than 100,000 units per annum.

More than 75 years ago, Firestone Industrial Products Company, LLC (FSIP) started a tradition of product technology and development that is unmatched today. That development has continued over the years, leading to a rich heritage in the automotive industry that is marked with infinite innovation and product improvements.

Firestone Industrial Products Company, part of the Bridgestone Group, has been the undisputed global leader in manufacture of Air Springs. Harvey S. Firestone, the Founder of the company, developed the first commercial air spring way back in 1935.

In the early 1930s, the automotive industry found itself under heavy pressure to improve the riding quality of passenger vehicles as a result of higher speeds, longer trips and improvements in other phases of automobile design and construction. Firestone, as a supplier of automotive suspension components in the form of tires, tube, rubber mounts and bushings, was interested in contributing to the solution.

Understanding the problems associated with rubber springs, including stiffness and inelasticity, Firestone entered into the development of an “air spring”, establishing a separate engineering facility for Automotive Research. The original concept for the Firestone Airide brand air spring was to enclose the load-carrying column of air in a rubber and fabric container, following tire construction principles whenever possible. The fabric provided the strength to hold the air pressure, while the rubber served to make the container impervious to air leakage and to provide a protective outer cover.
Since patenting the air spring in 1938, Firestone continued developing its technology. By the late 1940s, Firestone began providing air springs for highway bus suspension systems. In the early ‘60s, the business expanded to heavy duty trucks and trailers. In the late 1960s/early 1970s, Firestone began providing air springs for several railroad systems, including the Bay Area Rapid Transit (BART), Amtrak and Mass Atlanta Transit Authority (MATA). In the mid-1970s, the company purchased the Ride-Rite line of air helper springs and brought its first heavy duty aftermarket distributor on board.

From the very beginning, Firestone has set the standard in air spring technology. Today, a majority of the heavy duty commercial trucks and trailers in North America and Europe use air suspensions, with continuing growth in South America and Asia. Firestone now has air spring manufacturing and assembly facilities in four continents North America, South America, Europe and Asia.Headquartered in Indianapolis, Indiana, Firestone distributes its offerings, which boast ISO, QS and TS certifications, as both aftermarket and OE products around the world.

Firestone Industrial Products has made steady progress, growing to enjoy a 36 per cent share of the worldwide air spring market. Because of FSIP’s success in designing and manufacturing air springs for the international transportation industry and a broad variety of industrial applications, FSIP has become a global company in its own right.

FSIP has grown from a single plant in Indiana to a multinational manufacturing and distribution company. FSIP has designed and built more air springs for more applications than any other air spring company in the world, and with manufacturing and technological capabilities on four continents, FSIP has become the world’s leading air spring supplier.

Global partner

This division of approximately 1,500 associates is headquartered in Indianapolis, Indiana. From this base, FSIP services its worldwide business through sales offices in Indianapolis; Detroit, MI; London, England; Sao Paulo, Brazil; Beijing, China; and New Delhi, India.

FSIP operates manufacturing facilities in Williamsburg, Kentucky; Dyersburg, Tennessee; Sao Paulo, Brazil; Wolsztyn, Poland; Madurai, India and has an assembly operation in Beijing, China. It also maintains a major warehousing operation in Rotterdam, Netherlands, to fulfill the requirements of customers internationally, with plans to further expand its local warehousing in the Asia-Pacific region.

In India, Firestone has established a JV with the TVS Group, Firestone TVS Private Ltd., with its manufacturing facility in Madurai. The company has started commercial production of air springs and in a short span has established leadership position in the Indian market.

In China, Firestone currently has an assembly facility. The company is investing on a new manufacturing facility near Beijing.

Product portfolio

Air springs are highly engineered elastomeric bellows with specially designed metal end closures that contain a column of compressed air. The bellow itself is constructed of calendered rubber and high-strength, fabric-reinforced rubber.

Most of the air springs FSIP makes are Airide air springs for truck, trailer, and bus suspensions. Few products have had more influence on the global trucking industry than the Airide air spring. Of all the trucks on the road today with air suspensions, more than half are equipped with Firestone brand Airide air springs. Marketing research indicates that Firestone is the best known brand of air spring in the world.

Airide air springs are sold directly to original equipment truck, trailer, and suspension manufacturers such as PACCAR (Peterbilt/Kenworth), Holland USA, Hendrickson International, Freightliner, Scania, Volvo, Mercedes Benz, and ArvinMeritor. Airide air springs are sold to the heavy-duty aftermarket through a network of national and international distributors.

FSIP also has a comprehensive range of air springs for passenger car, SUV and light truck, intermodal, rail and industrial applications.

Ride-Rite, Coil-Rite and Sport-Rite air springs are supplemental air springs that work with a vehicle’s existing steel leaf springs to provide a more controlled ride and to allow side-to-side and front-to-back leveling of the vehicle simply by varying the air pressure in the springs.

Firestone’s latest innovation, IntelliRide systems, incorporates automotive OEM pneumatic and electronic technology to provide air suspension solutions. The IntelliRide system is engineered to optimize air spring performance as it reads and adapts to road, vehicle, and driver inputs.
With these focused product lines, FSIP services the needs of a broad variety of businesses and industries globally. FSIP’s customer list includes many of the world’s largest truck manufacturers, trailer manufacturers, suspension builders, industrial accounts, automobile companies, and tire manufacturers.

Technology

Although product quality and customer service form the foundation of FSIP’s business, research and engineering have always been the cornerstone. The engineering department utilizes state-of-the-art CAD-FEA equipment and processes for product development. Today, with the global corporate resources of Bridgestone, FSIP has technical capabilities on three continents.

Major research and product development projects are conducted on an ongoing basis at the FSIP division engineering lab in Noblesville, at BFS Research Laboratories in Akron, Ohio, with FSIP European engineering resources, and at Bridgestone’s Technical Center in Tokyo. Firestone’s recent research and development capital investments include a 6 degree-of-freedom tester, as well as a high frequency machine designed to test harshness with a cycle rate up to 500Hz. These tools equip Firestone to optimize air spring designs that meet our customers’ needs.

This level of commitment and recognition serves to enhance Firestone Industrial Products’ position as the “World’s No.1 Air Spring”.

“We are in India for the long haul”

Firestone and the TVS Group signed a JV in 2007 to set up a manufacturing facility in India for air springs. The 51:49 JV between Firestone and TVS established a manufacturing facility in Madurai and started commercial production by end of 2008. After almost a year and half, the Indian plant has streamlined production and is turning out 5,000-6,000 air springs every month.

Mr. Arun Kumar, Managing Director of Firestone TVS, said: “We are very happy with the progress on the Firestone TVS JV. The relationship with the TVS Group has been excellent. We have found a good partner and the co-operation has been very good. We have recently completed the first phase of expansion which can take care of our requirement for the next couple of years before we look at further expansion. India is a very interesting and important market for us and we are here for the long haul”.

Currently the Indian plant manufactures rubber bellows locally and metal parts are being imported. What is interesting about the Madurai plant is that it is one of the very few plants which can make air springs for types of segment including buses, trucks and trailers, rail and industrial. The plant is very flexible to cater to even small volumes.

The Madurai facility is built over an area of 25,000 sq. ft. equipped with state-of-the-art machinery to manufacture air springs as per Firestone’s global standards. The Firestone TVS plant has been set-up with a capacity to manufacture 100,000 air springs per annum in two shifts. The company is currently supplying to Wheels India, TACO-Hendrickson and to the Jamna Auto-Ridewell combine.

Mr. Arun Kumar said: Firestone is the undoubted global leader in air springs. Firestone comes with nearly 75 years of experience and expertise in air springs manufacturing with strong global OEM relationships. In the US, Firestone is a 100 per cent supplier of air springs to companies like Freightliner, Paccar, Hendrickson, ArvinMeritor, SAF Holland and many others. This has immensely benefited the JV in India too. “Our approach to this business is very different. When we work with a customer, we build relationships which will last for a lifetime”.
Firestone TVS is the first company in India to manufacture air springs. The decision came at the right time when air springs and air suspension system as a technology started getting accepted in the Indian market. But what is unique about the Indian market is, in most global markets like US, Europe, Japan, it is the truck segment which starts adopting air suspension as a technology. In US, nearly 75 per cent of trucks are on air suspension and in Europe it is 80 per cent. In India, the usage of air suspension in trucks is just 0.1 per cent. The segment which is driving the technology in India is the Bus segment. Currently the inter-city luxury buses are mostly fitted with air suspension systems. Increasingly, city buses have also started adopting this technology.

The recent JnNURM order for 15,000 city buses, funded by the government, were all on air suspension systems and Firestone bagged the entire order for supply of air springs. Firestone is part of all major projects with Indian OEMs. The Indian market size for air springs is close to 100,000 units per annum and is doubling every 5 years with an estimated growth rate of 18 to 20 per cent growth. “But the real growth we expect to happen in India and China is when air springs penetrate into the medium and light duty applications”, Mr. Arun Kumar added.

Apart from the Indian JV, Firestone has also established its Asian Headquarters in Gurgaon, Delhi, where 6 people are employed at the moment with plans to add more. The Asian Headquarters is responsible for the business in Philippines, Taiwan, Malaysia, Singapore, Indonesia, Vietnam and other Asian markets. Under the Asian SBU, Firestone has 2 plants – one in India and the other in China and the company has an Asia distribution centre in Singapore. The company has 2 product development centers in Asia – one in Gurgaon and the other in Beijing. The Indian plant will also cater to Firestone’s requirement in other Asian markets. The company has just started some exports out of India.

In China, Firestone currently has an assembly facility in Beijing. The company is setting up a full fledged manufacturing facility in China and operations are expected to start in a year from now.

In India, competition in the air springs business will hot up in the next few years. Apart from Firestone, Vibracoustic is setting a facility for manufacturing air springs jointly with the Sigma Group. Contitech has established a facility near New Delhi for manufacturing air springs for rail segment and this may be utlilised for the truck and bus segment as well. Gibraltar has already announced plans to set up a manufacturing facility for air springs. A few other companies are also closely looking at the Indian market for air springs.

Mr. Arun Kumar observed: “We are confident about the future growth in the Indian market. The challenge for us will be to always stay ahead in terms of technology and local support, which is manufacturing, R&D, service. The segment where we see competition is in the lower end of the segment and aftermarket”.

Apart from catering to the requirements of OEMs, Firestone is strengthening its presence in the aftermarket by creating a distribution network. The company is working with Sundaram Motors, Madras Auto Service and Impal for the aftermarket distribution.

Tridec offers quality steering systems

Tridec offers a wide range of products. To start with, the company supplies mechanical steering systems which are characterised by a mechanical linkage between the fifth wheel plate and axle assemblies by means of steering rods. If the linkage is not possible mechanically, a hydraulic steering system is another option. Hydraulic cylinders are used to transmit the steering motions.

The additional advantage a hydraulic steering system can offer is a manual override. The axles can be steered by a hydraulic power pack without any steering motion from the tractor unit. Besides steering systems, the product range also includes special suspensions. These systems consist of both hydraulic and air suspensions. Heavy-duty systems have been developed specially for heavy transport. Tridec also makes a hydraulic axle suspension, for off-road applications.

There are several reasons to choose a steered trailer. Roads are becoming more and more congested. The number of round-abouts increases, and traffic in villages, cities and towns is growing too. All of which makes it more difficult or even impossible for a truck-trailer combination to access sites for loading and unloading.

With a Tridec steering system the trailer becomes more manoeuvrable and requires less road space, and therefore it becomes easier to make turns or to avoid obstacles. This results in considerable time saving and an improvement in fleet efficiency.

In many cases a rigid vehicle can be replaced by a trailer offering more load space and volume. Also a truck trailer combination offers more flexibility of the fleet.

Reduced tyre wear

Besides better manoeuvrability, a Tridec steering system offers several other advantages. Since there is less tyre scrub, the chassis is subjected to less forces, thus saving on vehicle maintenance and reducing wear of the road surface too. Trailers that are used for 20 per cent of the time on motorways and 80 per cent on local roads and city distribution, can reduce tyre wear by up to one-third. In addition, the carcass can be re-used since the risk of sidewall damage is minimal compared with non-steered trailers.

For example, at 80 per cent local roads and 20 per cent motorways, the life time of the tyre is not more then 40,000 km. This means a non-steered 3-axle trailer covering 80,000 km a year will need 12 replacement tyres.

Using the same example of 80 per cent local roads and 20 per cent motorways, the lifetime of its tyres is 120,000 km, therefore, in one year’s average distance of 80,000 km, only four tyres will need replacing. Taking the time saving into account because of the better accessibility and manoeuvrability, one can calculate the yield of a steered trailer per year.

Making this calculation on the basis of 80 per cent motorway and 20 per cent local roads, one will see that the efficiency of a steered trailer will decrease. Note then that for manoeuvrability and accessibility to sites, and reduced road surface damage, Tridec’s steering system offers considerable advantages.

Contitech undecided on Indian production facility for CV air springs

The Indian air springs business is registering exponential growth in the Indian market. This has attracted many global majors to set up local manufacturing in India including Firestone in a JV with TVS and Vibracoustic jointly with the Sigma Group.

Contitech, a leading manufacturer of air springs for the global commercial vehicle, rail, passenger cars and industrial applications, was one of the early entrants in the Indian air springs market teaming up with Resistoflex way back in 1995. Over the years, Contitech has established itself as a major supplier of air springs to Tata Motors, Ashok Leyland and to many other independent fleet operators in the replacement market.

In 2009 Contitech achieved global sales of Euro 179 million in the air springs business. Contitech has 7 manufacturing facilities for air springs in China, Germany, Hungary, Korea, Mexico and Turkey.

Despite being one of the early entrants in the Indian market, the company continues to import air springs into India and sells it through its Indian partner Resistoflex. Mr. Diethelm Bauch, Vice President for Commercial Vehicles OEM, Contitech says, “We are still not decided on setting up a plant in India for manufacturing commercial vehicle air springs. We are looking at a marketsize of 130,000 air springs annually, which will encourage us to set up a manufacturing facility in India”.

The Indian air springs market size for commercial vehicles is estimated at around 100, 000 units and is growing at 15 to 20% annually. Contitech has recently set up a plant in China and the next plan is to build a facility in South America, says Mr. Bauch. “We have excellent business relationship with including Tata Motors, Ashok Leyland, Volvo and other OEMs and are part of many of the upcoming projects in India. We will be able to cater to the existing demand in the Indian market from our plant in Korea”, he added.

Contitech has a strong business for sir springs in the rail segment in India. The company has established a plant near Delhi for manufacturing air springs for the rail segment. “The Indian railway market is one of the fastest-expanding markets in which we are active”, said Mr. Friedrich Hoppmann, head of the ContiTech Railway Engineering segment last year when the company announced its plans for India. “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.

In the Indian market, particularly the commercial vehicle segment, the bus segment has starting adapting to air springs faster than the truck segment. The luxury bus and coach segment are predominantly fitted with air suspension systems and even the city buses are moving towards this technology.

The recent JnNURM order for 15,000 city buses has been completely on air suspension systems. This has resulted in exponential growth of air springs business in India. Globally, the truck segment has been driver of growth for air springs. In the US, nearly 75% of the trucks and trailers are on air suspension systems. Similar is the case in Europe. In India, currently the penetration for air suspension system in the truck and trailer segment is quite insignificant. But it’s a question of time.

Trucks and trailers could cause serious damage to roads if over-loaded. With the Government investing heavily on highway development, there will be a serious effort to maintain these roads for the next many decades. This means more serious regulations on the way goods are being transported which is where technologies like air suspension systems become more relevant.

TRF acquires UK-based Hewitt Robins

TRF Ltd., a Tata enterprise, has acquired the UK-based Hewitt Robins International Ltd. (HRIL).

Under an agreement signed between Mr. Sudhir Deoras, Managing Director, TRF Ltd., and Mr. Christopher Pratt, Director, HRIL, the latter will become a 100 per cent subsidiary of TRF. Present on the occasion were Dr. Jamshed J. Irani, Director, Tata Sons Ltd., and Chairman, TRF Ltd., and Mr. Anwar Hasan, Director, Tata Ltd., London.

This TRF investment represents a significant progression in the direction of rapid growth and globalization by the company. TRF has identified a number of benefits from the acquisition. Enhanced scale will provide a more meaningful presence in both European and Indian markets and the sub-continent. The advantage of low-cost production in India, at TRF’s Jamshedpur plant, along with technical expertise from HRIL in the area of mobile crushing plants and screens, will improve the competitiveness of the company in this market significantly. The combination will also allow cross-fertilisation of research and development capabilities, and there will be a transfer of technology, best practices and expertise within the two companies.

HRIL has a proven history of bulk material handling and processing for over 90 years. Having developed a world-class reputation for strength and endurance within the heaviest industrial plant installations, HRIL equipment is operational throughout the world in industries ranging from mining and quarrying to foundries and ore preparation.

Hewitt Robins is engaged in design, manufacture of mobile crushing plants and screens, and related products in the quarrying, mining, recycling, iron and steel industries. Its proven screen and crusher brands, including the ‘Container Classic’ and the ‘Super Jaw’, are all setting standards by which competitors’ equipment is judged.

HRIL’s product lines include inclined screen, horizontal screen, de-watering screen, widescreen, high energy screen, grizzly feeders, foundry equipment, jaw crusher, cone crusher and mobile crusher. Operating an efficient and competitive UK and European-based manufacturing capability, HRIL produces standard and custom-designed equipment, which is complemented by a full range of fabrication and mechanical engineering services. With offices in the UK, France, the Czech Republic and the US, the company provides comprehensive design, production, installation, service and parts back-up.

Over the last five decades, TRF has emerged as a pioneer in solutions for material handling equipment and processing systems required in the infrastructure development. In quest of rapid growth, TRF has also diversified into automotive applications business. It envisages a five-fold growth in five years and becoming a Rs. 2,500-crore company by 2013 by its enhancing focus on material handling business and auto applications business.