Auto Monitor - 23 April 2012

Page 1

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 ns Tur w o N

ekly e W

Vol. 12 No. 09

23 April 2012

w w w.amonl ine.in

32 Pages

FOCUS

` 50

INTERVIEW

PLASTICS

“W ARE DEVELOPING A SNOW CUTTER, “WE W WHICH WILL BE THE FIRST SUCH COMPLETELY INDIGENOUS PRODUCT IN INDIA” IN

Pg 10-13

PR Naik, Director (Defence), BEML

Pg 8

Delphi engineers module upgrade Bhargav TS Bangalore

I

n order to leverage its Body Control Module (BCM) to the next level, Delphi has recently developed a 24-volt module for the commercial vehicle segment. The new BCM has been developed at Delphi’s Technical Centre in Bangalore. The module offers the functionality expected in a standard BCM including an RF receiver for remote keyless entry and a tyre pressure monitoring system. So far the centre has developed two kinds of BCMs for utility vehicles like Mahindra Bolero and XUV500. In a recent interaction with Auto Monitor, the Director of Delphi Technical Centre India (TCI), Nambi Ganesh G said, “We will be supplying the BCM to major commercial vehicle manufacturers this year. The body computer becomes complete with an immobiliser and also with a keyless entry. Our BCMs

will have features like a tyre pressure monitoring system, different kinds of lamp controls and rain sensing sensors.” Optimisation and advanced developments in terms of comfort, safety and variety are already presenting a great challenge for the vehicle electrical system. The BCM is the core component for the realisation of a broad range of functions. “The central control unit can combine classic power distribution and the safeguarding of relay and fuse boxes with the advantages of intelligent, micro-controller controlled systems. In addition, the modules play the deciding role in cost efficiency, as they enable the quantum of wiring within the vehicle to be reduced significantly by providing interfaces for CanBus systems,” Ganesh said. The BCM checks, regulates and operates electronic devices present all through the vehicle. When electric devices were initially introduced in cars and trucks, each device was governed

Nambi Ganesh G, Director, Delphi Technical Centre India

by a separate electric component. There was an independent module for air-conditioning, interior lighting and door locks. The body control module integrates all these independent modules under one system so that they function together instead of functioning separately. This is also easier for manufacturing and troubleshooting.

While there are many different types of body control modules, they are generally like connecting sensors, switches and automatic reactions together in one computer system. These components are divided into inputs, such as sensor data on heat or speed, outputs, or ways in which, the module computer responds to regulate the vehicle’s electronic

functions. Inputs and outputs are further divided into analogue and digital types of information. Analogue signals are used with modules that may change continuously (such as oil pressure), while digital signals are used for modules that can simply be on or off (like the headlights or the oilindication light). According to Ganesh, Delphi will be looking into commercial vehicle space, since it is the fastest growing market in India. He added that the company will also be looking at the other possible areas in the commercial vehicle segment. Currently, the company is manufacturing the BCMs at its Chennai plant. Delphi’s Technical Centre India (TCI), which was established in Bangalore in the year 2000, has a team of engineers working on several advanced engineering systems including embedded software, mechanical engineering, product engineering design and other automotive engineering related fields.

Acquisitions, organic growth opportunities drive TVSL Our Bureau Chennai

T

he additional investment s t hat T VS L o g i s t ic s ( T V SL) has received though

DATA MONITOR Top 5 2W Makers Company

Mar-11

Mar-12

Change

HML

504,452

513,552

1.80%

BAL

220,084

210,383

-4.41%

HMSI

137,262

212,815

55.04%

TVS

162,719

160,736

-1.22%

27,212

34,618

27.22%

Suzuki

Top 5 2W Exporters Company

Mar-11

Mar-12

Change

BAL

54,308

90,465

66.58%

TVS

24,062

19,538

-18.80%

HML

11,400

14,738

29.28%

IYM

10984

12067

9.86%

HMSI

9,929

7,675

-22.70%

* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL

Kohlberg Kravis Roberts & Co LP (with its affi liates, KKR) and the initial outside investor, Goldman Sachs, will propel the company grow both in terms of inorganic and organic ways. According to the Managing Director of TVSL, R Dinesh, the additional funding will help the company to grow with its existing customer base. “We decided to go for the second round of funding because we see the market potential and opportunities for us to expand and grow globally. Besides growing with our existing customer base, we also look forward to our private equity investors, Goldman Sachs and KKR helping us expand our capabilities and geographic footprint.” TVSL provides logistics solutions across multiple verticals including automotive, distribution, electronics, and discrete component manufacturing. The company focuses on supply chain solutions, warehousing solutions, and asset-based value added services including mate-

rial handling and executive commutation. Currently, it has operations in few locations across the world including the US, UK, Europe and Thailand. Recently, T VSL reached an agreement with KKR and Goldman Sachs for an investment of `268 crore. KKR will invest `242 crore (approximately $47 million), while G old ma n Sachs will make an addon investment. The primary proceeds will be used to further expand the company’s logistics business. This is the second time TVSL received private equity funding. Goldman Sachs made its initial investment in TVSL in 2008. Executive Director, TVSL, S Ravichandran said, “Within the Indian logistics sector, we focus on the auto and discrete

R Dinesh, Managing Director of TVSL

manufacturing sectors. These industries are experiencing rapid growth driven by both domestic and export demand and currently have relatively low third-party logistics penetration compared to their global peers. This funding will help us to service our customers even better.” “This investment is in line

with our ongoing strategy to partner with strong promoter groups and management teams in a sector, which builds on and benefits from the Indian industrial uptick. Logistics consolidation in an otherwise fragmented industry and best in class supply chain management are clear areas where KKR, partnering with TVSL, can add a lot of value,” said Member of KKR and Head of KKR India, Sanjay Nayar. Managing Director, Goldman Sachs and Director, TVSL, Sanjeev Mehra concluded, “Since our initial investment in 2008, TVSL has demonstrated strong growth and successfully expanded across the globe, acquiring new commercial capabilities and establishing footprints in key geographies to extend its reach throughout North America, Europe and Asia. Goldman Sachs’ additional investment in this second round of funding further verifies and symbolises our conviction in the company’s strong future growth prospects.”


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