WABCO-TVS, manufacturer of air brakes for commercial vehicles, expects to complete construction of its export-oriented facility at Mahindra World City, Chennai by Q4 of this financial year and start operations by January 2013.
Currently, the company has factories in Ambattur, Chennai, and two in Jamshedpur. It also has a plant at Mahindra World City SEZ, which is now being expanded to include a new factory focussed on exports.
“This is a special project for exports; construction will be over by Q4 of FY12, and it will come to stream by January 2013. The first phase will see an area of 2,000 sq m, with provision to expand up to 5,000 sq m,” said Mr P. Kaniappan, Wholetime Director.
WABCO-TVS, a joint venture between TVS Group and WABCO Holdings, sees huge potential in the export market. It already supplies to companies such as Volvo and Renault in the markets of Sweden, Germany and France. The US and Brazil are also promising markets for the company.
“We have sales offices and after-sales set-up in Sweden and Germany. The construction boom in China also offers us potential,” said Mr Nikhil Varty, VP, Compression and Braking.
In FY11, WABCO-TVS achieved a turnover of Rs 899 crore, at a growth of 48 per cent. The company earned Rs 118 crore from exports (Rs 55 crore).
The company plans to invest Rs 60 crore in FY12 — bulk of it will go into the export plant.
The company supplies products such as brake actuators and valves, clutch servos, compressors and anti-lock braking systems, to the medium and heavy commercial vehicle industry. Its clients include Ashok Leyland, Tata Motors and Volvo.
In line with the agreement with Sundaram Clayton, after the acquisition of equity shares by Clayton Dewandre Holdings of TVS group, WABCO-TVS' name will be changed to WABCO India Ltd.