Auto component maker Federal Mogul's Chennai plant to begin operations by March

S.MURALIDHAR
NEW DELHI, JAN. 6: 


The company has added after-market products to a range that was otherwise heavily oriented towards traditional engine parts such as pistons.

Global automotive components manufacturer Federal-Mogul's new facility for producing braking and friction materials, being set up in Chennai, will begin operations by March this year. The plant is expected to be inaugurated next month and will initially focus on after market products like linings and brake pads.

Speaking to Business Line on the sidelines of the Auto Expo 2012 here on Friday, Mr Jean de Montiaur, Corporate Vice-President and CEO India, Federal-Mogul India group of companies said that the plant is being set up on a 10-acre plot and will be operational in phases. A total four phases within one large building will be set up over the next four years. The plant will expand the product range that is manufactured locally and will eventually enable Federal-Mogul to enter new segments, Mr Montiaur said.

He added that the Chennai is significant geographically due to the location of a large number of OE (original equipment) customers in the region and the plant will also enable the addition of products like brake pads for discs, linings for heavy commercial vehicles and other friction products. The products will enable Federal-Mogul to cater to both OE and the after-market customers.

Recently, the company added a number of after-market products like wiper blades, engine coolants and brake fluids to its portfolio. These brought in a considerable change in profile to its product range that was otherwise heavily oriented towards traditional engine parts such as pistons, piston rings and engine bearings. The new Chennai facility will focus largely on catering to the demands of the domestic market here, though it can also double up and act as a back-up facility in the event of any production disruption at any of the Federal-Mogul plants globally, clarified Mr Montiaur.

The company wants to aggressively increase its focus on the after-market. The aftermarket is growing rapidly as the influx of new vehicles has expanded the total Indian car market, which was 14 million vehicles in 2005 and is projected to grow to 55 million vehicles in 2020. This will drive new requirements for high quality OEM-style repair and maintenance parts, felt Mr Montiaur.

Federal-Mogul's Indian headquarters is in Delhi, and one of the company's 18 globally networked technical centres is in Bangalore.

(Source : http://www.thehindubusinessline.com/companies/article2781093.ece)

SMEs to display exclusive products at Auto Expo 2012

Namrata Kath Hazarika | 04 Jan, 2012
The 11th edition Auto Expo that is to get underway on Thursday at Pragati Maidan, New Delhi will offer potential opportunities for auto component manufacturers, particularly the small and medium enterprises (SMEs) from the sector, said Auto Component Manufactures Association (ACMA) Arvind Kapur.

"The Auto Expo will act as a platform for highlighting the progress the auto-component industry has made over the last 2 years since the previous Auto Expo in terms of its growing capabilities and capacity, specially in the area of new product development and adoption of latest product and manufacturing technologies, particularly to meet the rapidly changing requirements in terms of emission reduction, enhanced safety, security and comfort," Kapur said.

"Both Indian and foreign business visitors will have ample opportunity to see products on display as well interact with senior officials of component companies at the venue grounds," he said addressing a press conference in New Delhi on Tuesday.

SMEs are the backbone for the growth of the automotive industry. So, the show will help them to display their products exclusively to the global audience, he added.

He stated that many auto component manufacturers from different states of India such as Karnataka, Gujarat, Maharashtra, Ludhiana and the other states have come together to participate in the Auto Expo 2012.

Around 1500 exhibitors from 24 countries such as UK, Germany, Japan, Korea, US, Turkey, Russia, Thailand, Malaysia, Canada and delegation including from many other countries are to be a part of this mega event.

The display will include a wide range of new and locally designed/developed auto-components, new designs of component systems like engine management systems, new age electronics like Navigation Systems, vehicle security systems, etc.

"This expo will position the Indian auto-component manufacturers as the most ideally suited to manufacture components for small cars, thus making India a key hub for production of small cars and two wheelers in the world," Kapur also said.

Further, on the growth of the auto component sector, Kapur added, ""The auto component industry has roughly a turnover of about USD 40 billion at present out of which exports are around USD 5.2 billion."

"We are about to grow at a rate of 15 percent by 2020. We should be USD 110 to 115 billion and almost 30 per cent will be exports. The 30 percent will be around USD 30-35 billion of exports which will be to the developed world. This will be the strength of the auto component industry in India." he also said.

The expo can also help the auto component industry in India to increase their share of exports, he added.

The edition of the event will focus on the theme " Mobility for All" with special emphasis on the safety and need of environment-friendly fuels, vehicles, technological advancements and innovative designs. It will also focus on "New Technology-Green Technology", to spread a message on green manufacturing.

Rajive Kaul- Chairman, steering committee, Auto Expo 2012 also mentioned that some new entrants are also part of the show this time and they include global companies like Polaris of USA, Triumph of UK, Mini & Motorad range from BMW and Vespa from the two wheeler segment, and Peugeot, Nissan and SSangyong of Korea (Mahindra Group) from the cars segment.

Paccar of Netherlands from the trucking segment will be a part of this expo, he added.

(Namrata Kath Hazarika can be contacted at namratakh@tradeindia.com)

(Source : http://www.smetimes.in/smetimes/news/top-stories/2012/Jan/04/smes-to-display-exclusive-products-at-auto-expo-2012890159.html)