I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S
Auto Monitor
Vol. 13 No. 17
www.a mo nl i ne.i n
20 May 2013
INTERVIEW
Pg 10
24 Pages
INNOVATION
`50
Pg 14
The art of war
Meeting Standards
Michael Perschke, Head, Audi India
2013 Automotive Industry Perspective
Scan this code on your smart phone to visit www.amonline.in
Oerlikon to set up third plant in Gujarat Invests $60 mn; to shift production of synchronizers, transmission from Noida to the new plant Nabeel A Khan New Delhi
S
wiss technology major Oerlikon Drive System (ODS) is investing $60 million in its third plant in India in Gujarat. With the plant expected to begin operations by 2015, the company hopes that India will contribute at least 25 percent to its global turnover. To achieve these numbers, the company will place 3,000 of its 6,000 employees in India. For reasons obvious, the company’s global CEO Heriberto Diarte will be based out of New Delhi. ODS produces transmission and axles for high-end CVs sees India as a high potential market. It is also seeking to avail the cost competitive manufacturing base the country offers. “India is still a cheaper manu-
The company has acquired 35 acres of land at an investment of $9 million, part of the company’s $60 million investment plant over the next 4 years. facturing base compared to most other countries. While we make hi-tech products, we constantly strive to find cost solutions and think that a combination of good workforce and automation will offer a solution,” he added. Besides plants in India, Oerlikon has plants in the US and Italy. Simultaneously, Oerlikon has recently expanded capacity at its
Belgaum plant at an investment of $15 million and installed a new heat treatment unit. Construction at the new Gujarat plant is expected to start by Q4-13 or Q1-14. The company has acquired 35 acres of land at an investment of $9 million, part of the company’s $60 million investment plant over the next four years. Phase I of production is expected to start by mid-2015. “The idea is to transfer two production lines of synchronizers and transmission assembly from Noida to the new plant.
All types of synchronizers clients will be catered to from the Gujarat plant,” Heriberto added. The shift will enable Oerlikon to produce difficult and hi-tech/ high performance gears and clutches that require high level of technology at the Noida plant. “At Noida, we have mature engineers that makes for good capabilities. It’s easy to improve technology when you have a base,” he added. Once the Gujarat plant is in operation, it is expected to earn about $100 million which will be a 50:50 contribution to local as
well as exports market. In India, the company’s manufacturing activities are more than 90 percent localized and employs around 2,500 work force here and has a global workforce of 5,500 employees. The group’s global turnover was $800 million of which India contributes around $150 million which is around 20 percent. Commenting on the move, Khurshed Thanawalla, Country Representative, Oerlikon India, says “India is key to Oerlikon’s ambitious growth plans, and the relocation of one of Drive Systems’ CEO is reflective of this. India is important as a market as well as a manufacturing hub for Drive Systems and we would benefit from Heriberto Diarte being based out of India.” The company entered India around two decades ago with two subsidiaries Oerlikon Graziano and Oerlikon Fairfield and their respective major production plants in Noida and Belgaum. Now it earns 60 percent of revenue from domestic market and 40 percent from exports. The list of its customers includes Indian companies like Tata Motors, Mahindra & Mahindra, JCB and India operations of New Holland, John Deere, Carraro, etc.
Kern’s master plan May launch diesel B Class in August, A Class to roll out in both petrol and diesel on May 30 Nabeel A Khan New Delhi
M
ercedes Benz which has been trounced by two of its ace rivals BMW and Audi in India for many months now is clandestinely trying to regain its position in terms of sales volume. The company has identified that the strategy going forward is to look at enhancing its presence in the compact cat-
egory. The German carmaker has chalked out ambitious plans to add at least three more products in this segment. The first is an A-Class that Mercedes Benz will launch on May 30 in both diesel and petrol variants. The second launch includes diesel variants of the B-class in August, while it plans to launch a compact Sports Utility Vehicle, GLA, later on. The luxury carmaker will continue to import A-Class and B-Class as completely built units.
GL-Class @ `77.5 lakh Pg 8 “We will launch the A class on May 30. We expect the B-Class diesel in three months time and we will reveal the details around June,” said Eberhard Kern, Managing Director and CEO, Mercedes-Benz India on the sidelines of an event recently. Compact SUVs by the two other luxury carmakers, BMW
Eberhard Kern, MD and CEO, Mercedes-Benz India and tennis legend Boris Becker at the launch of the new GL-Class in Delhi.
X1 and Audi Q3, are already being sold in India in the same segment. Mercedes Benz, though late in bringing in the compact SUV, expects to see a rise in sales with this new move. The petrol variant of the A Class will reportedly have a 1.6 litre turbo motor, while the diesel engine variant
may have a 1.5 litre engine. Simultaneously, the company continues with its product offensive on other lines. It is doubling the capacity of its Chakan plant from the current 10,000 units by the end of the year. Mercedes...
Contd. on Pg 8