The Hindu Business Line : Omax to set up captive unit for Tenneco of US

Latest to join the bandwagon is the Rs 478-crore domestic automotive components manufacturer, Omax Autos, which is in the process of setting up a captive unit for US automotive major Tenneco.

The export-oriented-unit, which is coming up in Gurgaon (Haryana), will be used to supply machine components to the $3.5-billion Tenneco, a senior company official said.

Though the exact size of the order from Tenneco could not be ascertained, this, combined with tie-ups with other global OEMs, would help boost the exports revenue of Omax in the coming fiscal.

The unit is part of the company's initiative to consolidate its export operations in the Gurgaon region. As part of this initiative, the company is also diverting machinery from its Bangalore plant to Gurgaon. Omax had said earlier that it was planning to use its Bangalore plant to commence exports to Delphi.

According to the official, in light of the positive signs from automotive players in the southern region, the Bangalore plant will be used to tap the southern market and generate new business. Omax is already a supplier to south-based companies such as TVS, Toyota, and Sundaram Clayton among others. The company has also commenced a second phase of extension at its Bangalore plant.

Omax has plans to spend about Rs 80 crore over the next two years towards setting up the new units as well as for capacity expansions.

The official also confirmed that Omax was still in talks with two to three companies, believed to be based in Europe, for acquisitions outside India. Incidentally, in recent months two domestic auto component firms — Amtek Auto and Bharat Forge — have announced acquisitions of European auto firms.

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