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Priyanka Vyas

New Delhi, Oct 23 Continental Automotive Systems (CAS), division of European major Continental Corporation, along with its recently acquired company Siemens VDO, plans to make India a strategic hub for future product technologies for the emerging markets. The country will also serve as a sourcing base for its global supplies.

CAS, which employs 100 specialised engineers at its development centre in Bangalore, aims at increasing the number by five times. “We are pooling our engineering resources for the emerging markets. We have about 100 specialised engineers and would recruit 300 in two-three years. So combined with Siemens the count would be 500-600,” Mr Murali Srinivasan, General Manager, Continental Automotive Systems, India, told Business Line.

He added that the work done out of the development centre would be in telematics and infotainment for low cost cars.

CAS, which has partnered with Rico Auto to manufacture hydraulic brakes in March this year, would be applying to the Foreign Investment Promotion Board next week for permission for the venture and expects an approval by November.

On the company’s plans for greenfield investments, Mr Srinivisan said, “Siemens VDO already has manufacturing facilities at Manesar, Pune and Bangalore to supply to OEMs in the north, west, and south of the country. We are looking at availing these facilities and its development centre in Bangalore to expand our presence in the country.” With these facilities and Siemens existing customer base, CAS would be able to cater to leading two and four wheeler manufacturers in the country. “As both companies operate in different segments, combined synergies would be great and would fill in the gaps.” .

Continental Corporation plans to source 50-55 per cent of its worldwide supply of components from Asia, up from 25 per cent. The company employees 87,000 people worldwide and posted revenues at about 14.9 billion euros in 2006. Its global automotive systems division clocked 6 billion euros last year and employs 30,000 people

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