Financial Daily from THE HINDU group of publications
Thursday, Feb 12, 2004
Financial Daily from THE HINDU group of publications Thursday, Feb 12, 2004 |
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Industry & Economy
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Automobile Components Tenneco to buy more auto parts from India Our Bureau
Chennai , Feb. 11 TENNECO Automotive, a global auto components producer and supplier, intends to step up its purchases from India, the company's Senior Vice-President (Global Supply Chain Management), Mr Paul Schultz, told Business Line. Tenneco, a $3.8-billion (Rs 17,500 crore) company, is a supplier of auto components to vehicle manufacturers. About three fourths of its sales comes from direct supplies to vehicle manufacturers, the rest from the replacement market. In 2003, Tenneco bought components worth about Rs 150 crore from Indian vendors. "Our target for the current year is Rs 220 crore," Mr Jignesh V. Raval, Director, Product Sourcing, said. JKM-Derim of Chennai, SDL Auto, Victoria Autoparts and Automax are some of the vendors that Tenneco buys from. Mr Schultz said that Tenneco had tied up with the Delhi-based logistics service provider, UTI, for working out how best to reduce transportation costs, "because we are going to be buying a lot from here." He said that India was a better bet than China or Thailand. Indian companies, he said, were able to "take our vision, develop a prototype and manufacture the product," whereas China was good only when it came to mass production. But is steel not costlier in India? Tenneco buys half a billion dollar worth of steel (Rs 2,250 crore) every year. "We enable our Indian suppliers to buy steel on our contracts," he said. In India, Tenneco has three lines of activities. It has manufacturing plants in Hosur, Pondicherry and Gurgaon, through two companies, Renowned Auto Products Mfrs Ltd and Hydraulics Ltd. It has its sourcing operations, with an office in Pune. And the company has recently begun back-office operations in Chennai.
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