Cyclone Vardah hits exports of auto components & aqua products from Tamil Nadu
Sreenivasa Rao Dasari The devastating impact of cyclone Vardah has badly hit the export performance of auto component manufacturers and the aqua sector in Tamil Nadu. Chennai is also known as the Detroit of Asia as it accounts for over 60% of the country’s automobile exports. Though Vardah did not affect the aqua units as they are located far from Chennai, it badly impacted the container movement as floods disrupted the activity at the port. The Federation of Indian Export Organisations (FIEO) urged the Centre and the Tamil Nadu governments to take a holistic approach in order to minimise the impact of natural calamities on the industry and export logistics. After the floods that affected the city last year, Chennai was limping ...
Escorts divests OEM, auto products business
The Dollar Business Bureau Escorts Ltd, one of India's major engineering companies, announced on Thursday that it is divesting its OEM and auto products division’s export business to Pune-based Badve Engineering, in an all cash deal. However, the company did not reveal the size of the deal. The deal is a part of the farm equipment manufacturer’s strategy to reorient the business in order to focus on its key verticals in construction equipment, agri-machinery and railway equipment, Escorts said in a release. “We believe that the transfer of OEM and export business to Badve Engineering will help us focus on our core areas. We are delighted that Badve Engineering has stepped in to take the business forward,” said Dipankar Ghosh, CEO, Escorts Auto Products ...
ZF Group to set up tech centre in Hyderabad
The Dollar Business Bureau German car parts manufacturer ZF Friedrichshafen AG will soon set up its first India Technology Centre, dedicated to mechanical engineering and software, in Hyderabad. The government has extended support to ZF's development teams, which, in turn, will enable the company to enhance local product development, said the company in a statement. The company will be fully operational by January 1, 2017, while it expects to employ 2,500 engineers by 2020.. "This new facility is a significant investment for ZF in India. We are harnessing the skilled talent pool that India has to offer in order to develop superior technology solutions for our global as well as local customers," said Stefan Sommer, CEO, ZF Friedrichshafen AG. "As demand for software engineering grows, ...
Auto component industry to grow at 10% in FY 2017
The Dollar Business Bureau Rating agency ICRA said that the auto component industry is expected to grow by 10 percent in the current financial year, considering the sales growth in motorcycle segment and passenger vehicles. In its quarterly note on the auto component segment, ICRA said that it expects the auto component sector to gain momentum and register a growth of 8.5 percent to 10 percent in 2016-17 as against the growth of 2.8 percent in the last financial year. Taking into consideration the rising localisation by original equipment manufacturers (OEMs), high component content in every vehicle and increasing exports from the country, the growth in the auto component sector will be more than the underlying growth in automotive industry, over ...
India has immense potential to lead the aerospace industry
Aravind Melligeri, Chairman & CEO, Aequs | Aequs targets revenues from the automotive business to grow to $30 million by 2020 and says that higher levels of FDI in aerospace and defence will help boost both volume and capability of the company Jayashankar Menon | @TheDollarBiz Helped by the growing reliance of leading global automobile manufacturers to outsource their auto component manufacturing to India, the country's exports from this sector are forecast to surge over three times from the current levels of $12 billion to $40 billion by 2020. Buoyed by the growing demand, the India-based precision engineering component manufacturer Aequs is targeting $30 million of its revenues to come from its automotive business alone by 2020. The company already supplies precision engineering components ...
