The Hindu Business Line : Voss ties up with Pune's Exotech for automotive unit

THE 200-million euro German component manufacturer, Voss Automotive has entered the Indian market through a joint venture with the Pune-based Exotech Group to manufacture specialised, new technology connectors for braking and fluid handling systems in commercial vehicles.

Pune's reputation as a hub for specialised automotive component manufacture has brought in yet another global player and interestingly it marks Voss' entry into the Asian market and is a precursor to its entry into the China market.

"We are currently in discussion with a few companies in China too for a possible joint venture," Dr Hienrich Holtmann, Managing Director, Voss Automotive, told Business Line. The German company's client list includes automotive majors such as DaimlerChrysler, MAN, DAF and Volvo, among others. The company has wholly owned subsidiaries in eight countries including the UK, Brazil, Spain and Czechoslovakia.

Voss Exotech Automotive, the 50:50 joint venture, will manufacture a range of connectors. "The existing technology makes brakes prone to air leakages resulting in fuel loss and inefficient braking," Mr Umesh Kothari, Managing Director of the JV said.

The company is setting up a Rs 14-crore, 200,000 units/annum manufacturing plant near Pune and expects to commence production by July 2006, according to Dr Holtmann. He said the company has already tied up a five-year contract with Tata Motors for supply of the brass connectors for its range of heavy and medium commercial vehicles.

"Indian OEMs want to improve their braking by upgrading technology with an eye on international markets and this gives us a huge opportunity," Dr Holtmann added.

The company meanwhile is in discussions with other commercial vehicle manufacturers who want to upgrade technology, Mr Kothari said. Fleet owners could make substantial cost savings with these connectors, he added.

The Exotech group currently manufactures a range of plastic tubings for fluid management applications like fuel, air brake, vacuum assist etc and supplies leading auto manufacturers in the country.

More Stories on : Alliances & Joint Ventures

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page