Endurance to supply castings for Tata Nano

These would include gear housings, engine castings, brackets and later housing for the CVT transmission as well.

During the first phase, components supplied by Endurance would constitute roughly two percent of the value of the Nano.

To meet its supply commitments, Endurance plans to invest Rs 35 crore at the Tata Vendor Park in Singur, which is spread over eight acres.

The company is one of the largest manufacturers and suppliers of aluminium die castings in the country. At present, the Endurance Group has 20 plants (including Singur) in six geographical locations in India, five plants in Europe and one plant in Thailand. It plans to grow rapidly through a mix of acquisitions and organic growth and has targeted a global turnover of US$ 1 billion for the year 2009-10.

During the current fiscal year, Endurance expects to record sales of Rs 2,500 crore. The main automotive businesses of this group are aluminium die casting products that contribute to about half of its domestic turnover. The other revenue contributors are proprietary products consisting of suspension, braking and transmission systems. The group also exports goods worth over Rs 75 crore every year to the US, European and Asian markets.

Interview: Anurag Jain, M D, Endurance group

Q: What were the challenges you faced in this project?
A: There were initially some political disturbances in West Bengal, which now seem to be settled. We have not faced any problems as such. The construction of our plant is going on smoothly.

Q: Did you source technology from foreign companies to develop products for the Nano?
A: No. All these products were developed by us indigenously.

Q: What kind of volumes will you be supplying to Tata for Nano in the next few years?
A: This will, of course, depend on how quickly Tata can ramp up production of the Nano.

Q: How will the Nano and cars like it affect the component sector?
A: With the one-lakh car becoming a reality, all component manufacturers will be under price pressure while maintaining their quality and lowering their cost structure.

Q: Tell us about your plans for 2008 in terms of new products and investments?
A: As such there will be no new investments in 2008 aside from what we are doing at Singur. However, the new customers whom we will be supplying in 2008 are Pierburg, Ashok Leyland, General Motors, Concentric Pumps and FPT – Italy.