Wabco India plans Rs.60 crore expansion
September 21st, 2011 - 8:43 pm ICT by IANSChennai, Sep 21 (IANS) Commercial vehicle braking systems manufacturer Wabco India Ltd Wednesday said it is implementing an expansion plan of around Rs.60 crore to increase exports as well as cater to the growing domestic demand.
“We are expanding our export oriented unit at Mahindra World City to cater to the requirements of company Wabco’s plants in other countries for compressor components. The outlay for the project will be around Rs.40 crores,” the firm’s whole-time director P. Kaniapan told reporters here.
Exports account for Rs.117 crore of the company’s total revenue of around Rs.899 crore.
He said the company is in the process of setting up a braking system assembly unit at Lucknow to cater to the needs of Tata Motors and Ashok Leyland. The total capacity will be around 7,000 units.
The assembly unit will start operations in 2012 involves and outlay of around Rs.10 crore and balance is for other projects.
Wabco India is a 75 percent subsidiary of Belgium-headquartered $2 billion Wabco.
The company was a joint venture with the city based TVS group till 2009, when both the parties decided to part ways.
According to Kaniappan it made sense for Wabco, having the technology, to go solo at a time when the market for commercial vehicles in India is logging growth and also start promoting products under the global brand Wabco. Earlier, the company was selling under Wabco-TVS brand.
However, Wabco India will be using the vast distribution network of the TVS Group to reach out to customers.
According to Wabco chairman and chief executive officer Jacques Esculier, the addressable market for the company’s products per vehicle is estimated to be around $3,000 in some markets but differs vastly region-wise.
“In India and China the per vehicle air braking system component content potential is around $300. We have to identify the market potential and convince a vehicle manufacturer,” he said.
- TVS group acquires Britain-based firm - Mar 27, 2012
- Toyota Kirloskar to roll out more cars, components - Jul 27, 2011
- Sharda Motors looks for equity investor - Feb 11, 2012
- Yamaha to set up Rs.1,500 crore plant in Tamil Nadu - May 14, 2012
- TVS Logistics to assemble gensets for Ashok Leyland - Aug 22, 2011
- Wheels India to invest Rs.70 crore on expansion - Oct 27, 2011
- Mahindra may delay XUV500 export to meet local demand - Oct 08, 2011
- CX Precision Mechanical to set up facility at Sri City - May 09, 2012
- Bosch to invest Rs.2,200 crore to ramp up production - Jan 04, 2012
- Daimler to beef up its R&D; activities in India (Lead) - Apr 18, 2012
- Auto makers continue to log growth (Lead) - May 02, 2011
- Tractor major to invest Rs.160 crore in expansion - Apr 03, 2012
- TVS logs 28 percent net profit, to launch new vehicles - May 24, 2012
- Bosch Electrical Drives to set up Rs.37-crore plant - May 25, 2011
- 1:1 bonus issue by TVS Motor Company - Apr 29, 2011
Tags: ashok leyland, assembly unit, braking system, braking systems, chief executive officer, compressor components, expansion plan, export oriented unit, global brand, india ltd, outlay, promoting products, rs 40, system assembly, system component, tata motors, time director, tvs group, vehicle manufacturer, wabco