Financial Daily from THE HINDU group of publications
Thursday, Jun 23, 2005
Financial Daily from THE HINDU group of publications Thursday, Jun 23, 2005 |
|
|
|
|
|
Home Page
-
Automobiles Industry & Economy - Automobile Components More vehicle makers foray into components biz Neha Kaushik
New Delhi , June 22 THE boom in the domestic auto components industry is encouraging more vehicle manufacturers — both domestic and multinational — to enter the market. Even as multinational firms such as Hyundai (through its car parts arm Hyundai Mobis) and Suzuki have drawn up strategies to enter the segment in India, the auto parts business is turning out to be a revenue spinner for domestic companies such as Kinetic, Hero Motors, and Hindustan Motors. Mahindra and Mahindra is also believed to be planning an aggressive strategy for the segment. "The idea is not only to achieve self-sufficiency in the production of components, but also supply them to Indian and global vehicle manufacturers," an official from an automotive firm points out. Two-wheeler maker Kinetic Engineering Ltd, for instance, expects a turnaround in its financial performance next year with its auto components business picking up. Currently, the auto components business generates revenues worth Rs 70-80 crore for the company. Hero Motors, too, is consolidating its position in the components space. The company is further expanding its sheet metal components and engine machining business, and is learnt to be examining the possibility of diversifying into other components, including castings. Hero Motors is already supplying engine components to Bombardier. Meanwhile, one of the country's oldest automobile firms, Hindustan Motors, has successfully developed its auto component business as a revenue spinner. The company recently hived off its principal component making units into a separate firm, Avtec, and invited private equity firm Actis Capital to pick up a stake in it. Further, taking advantage of the low cost of production in the country, multinational vehicle manufacturers are expanding their own auto components businesses as well. While Suzuki has already announced plans to set up an engine/transmission unit and an aluminium foundry, Hyundai Mobis is also foraying into the country.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|