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ZF, a global leader in driveline and chassis technology and safety parts, is charting 'Refresh India' strategy. The company will invest 200 million euros over the next five years to spur rapid growth over the next decade.
"Despite the current severe situation regarding Covid-19 in India, the ZF Group strongly believes in the long-term growth potential of the region. Therefore, we are launching a 'Refresh India' four-point strategy. This includes an intensive plan to rapidly grow our business in one of the largest automotive markets in the world. We plan to invest around 200 million Euros in the next few years to aid this growth through product launches, manufacturing and engineering footprint expansions, hiring and other developments across all business domains," Holger Klein, ZF Member of the Board responsible for Asia Pacific and India said in a statement.
A four-point strategy
The 'Refresh India' four-point strategy revolves around four key areas – Readapt, Reinforce, Retain & Restructure, and supports the strategic repositioning of India’s unique ZF Brand identity.
Under the Readapt pillar, ZF aims to introduce advanced global technological solutions affordable for the Indian market through higher levels of localisation and a strong thrust on design-to- market-solutions.
Also read: ZF’s divestment of full stake in Brakes India completed
Reinforce strategy is making Indian operations a global hub for worldwide requirements across Research & Development, IT & Digital Innovation, Manufacturing & Material sourcing. Substantial progress has been made in the recent past to utilise the Indian supplier base for child part requirements for the various divisions.
ZF will continue to leverage India’s manufacturing capabilities by expanding its footprint in the country. The statement added that the Group would set up a new manufacturing facility in Chennai and plans to increase the utilisation of other facilities.
Under the Retain area, ZF Group will continue to set high standards for performances in safety, quality and sustainability. ZF will continue to unlock its innovation power in the region by investing in the overall development of its employees.
Under the Restructure programme, it will undertake the necessary next steps to ensure all regulatory guidelines are being adhered to for WABCO India, in which ZF Group is a majority stakeholder. The integration of WABCO into the ZF Group is well underway and is expected to be completed by the end of the year as planned. ZF Group already divested its shareholding interest of 49% in Brakes India to meet the Anti-Trust guidelines of CCI post the acquisition of WABCO.
Leadership position
While ZF already enjoys a leading position across various technology solutions in automotive and non-automotive business segments, it also hopes to shape the future E mobility and next-generation technology in the Indian market through its global portfolio.
In the commercial vehicle space, the acquisition of WABCO bolsters our manufacturing and engineering capabilities to increase the content per vehicle.
“In this next phase of growth, we will also continue to leverage India as a global sourcing hub across four areas: R&D majorly focusing on software development, IT & Digital Innovation, manufacturing and material sourcing,” said Klein.
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