Two-pronged strategy. Polyhose draws up ₹550 crore capacity ramp up & deeper focus on new segments

Polyhose Group, a manufacturer and exporter of high-pressure Rubber and Thermo-plastic hoses, said it has devised a two-pronged strategy to drive growth in the near to medium term. While the Group along with its Japanese JV Partners will invest about ₹550 crore in expanding the capacities of its joint ventures, it is also looking to expand in newer segments such as aerospace and defence, and electronics manufacturing.

The Chennai-headquartered ₹2,800 crore group plans greenfield-cum-brownfield expansion (in and around Chennai) under its three Japanese joint ventures.

Polyhose Sato-Shoji Metal Works, a JV between $3 billion Sato Shoji Co Ltd of Japan and Polyhose Group, will invest ₹200 crore in expanding capacity for the manufacture of high-end steel parts for the aerospace, defense, and construction equipment industry.

Polyhose Kohyei India (PV) Ltd, a JV with Kohyei of Japan, will also invest ₹200 crore in creating capacity for the production of roofing systems and extrusion lines for electronic parts for construction and infra space.

Polyhose Tofle Pvt Ltd, a JV with Tofle Co Ltd of Japan, will invest ₹150 crore in creating additional capacity for the manufacture of stainless steel specialised flexible hoses for solar, steel plants, aerospace, and semiconductor industries.

“These capacity expansions are being undertaken to meet the emerging demand both in India and export markets,” Y J Shabbir, Managing Director of Polyhose India told businessline.

In addition to its manufacturing expertise, the Group’s strong focus on R&D has also come in handy to meet the stringent norms and increase market share. The company invests about 2 per cent of the revenue (of hose business - about ₹1,600 crore) on R&D.

Each division has its own R&D unit apart from a standalone DSIR-recognised unit in Chennai. About 80 people work in the company’s R&D division, said Ali Asger S J, Director-Technical, Polyhose Group.

Exploring new segments

While its traditional business segments continue to grow, the company is also focusing on aerospace and defence, and electronics manufacturing segments as it sees the business opportunities to serve OEMs in these segments. It has already started supplying to the US-based largest aircraft manufacturer, while it is gearing up to supply to the other Europe-based leading aircraft maker.

“We are the first company in South Asia in fluid conveyance to be certified with NADCAP (National Aerospace and Defense Contractors Accreditation Program) for the aerospace segment,” said Meena Goel – Head of Business Development, at Polyhose Group, said.

After aerospace and defense, the company is also foraying into electronic parts manufacturing, for which the company is in talks with a few Taiwanese electronics firms. It is currently building a multi-storeyed plug-and-play electronics manufacturing space of over 4 lakh sq. ft. in the Sriperumbudur electronic manufacturing corridor.

The group has been supplying its hoses and hose assemblies to automotive, non-automotive, and industrial segments. It also exports to 75 countries and exports make up about 60 per cent of its revenue. It has four manufacturing units in and around Chennai and eight assembly units located close to OEMs across states in India and has a presence at nine locations globally.

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