Financial Daily from THE HINDU group of publications
Wednesday, Jan 11, 2006
Financial Daily from THE HINDU group of publications Wednesday, Jan 11, 2006 |
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Automobile Components Corporate - Outsourcing Renault-Nissan likely to source parts from India Sudha Menon
Pune , Jan. 10 GLOBAL auto heavyweight Renault-Nissan Purchasing Organisation (RNPO), the common buying company for the Renault and Nissan alliance worldwide, has firmed up plans to source components and aggregates worth 100 million euros from India in the next couple of years. A high-level team from RNPO, led by the head of worldwide purchasing, is flying in early next week to shortlist a group of component manufacturers and commence sourcing from end-2006, top company sources told Business Line. RNPO purchases 70 per cent of the alliances' requirements of machinery, equipment and components valued at over $33 billion annually from its global community of suppliers and has been surveying the Indian market for a variety of commodities for the past six months. The Renault-Nissan alliance constitutes approximately 10 per cent of the global auto market, manufacturing the Nissan, Infiniti, Renault, Dacia and Renault Samsung brands, which puts it among the top four car makers in the world. "The plan is to initially source components for the combine's lower end models and also source lower end technology. Sourcing of higher end technology and aggregates for the premium model will happen only in the second phase after the combine is convinced about the merit of this market," the sources said. Company officials remained unavailable for comment despite repeated attempts to contact them. A 20-member team is, meanwhile, already in place at the Mahindra Renault offices, scouting the market for potential suppliers for the Logan and is parallely looking at RNPO's requirements. Sources said Supplier Account Managers for various `commodities' have visited the country over the last several months and auditing and initial shortlisting of supplier panels for various aggregates have commenced. The sourcing exercise, initially, will largely focus on the Logan, which is currently being manufactured in Romania, Russia, Morocco and will shortly go on stream in other destinations, including Iran and Columbia, pushing up sales volumes significantly. The move to kick start sourcing out of India comes from Renault group Chairman Mr Louis Schweitzer's belief that the country has the potential to emerge as a viable sourcing ground for the group.
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