Escorts Auto Products, part of the diversified Escorts Group, which manufactures shock absorbers, telescopic front forks, MacPherson struts, and steering components for two-wheelers and CVs, is now planning to cater to the passenger car OE segment.
18 Feb 2014 | 4905 Views | By Kiran Bajad
Escorts Auto Products, part of the diversified Escorts Group, which manufactures shock absorbers, telescopic front forks, MacPherson struts, and steering components for two-wheelers and CVs, is now planning to cater to the passenger car OE segment. The company is talking to multiple OEMs and is confident of bagging an order ...
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Escorts Auto Products, part of the diversified Escorts Group, which manufactures shock absorbers, telescopic front forks, MacPherson struts, and steering components for two-wheelers and CVs, is now planning to cater to the passenger car OE segment. The company is talking to multiple OEMs and is confident of bagging an order in the next six months. Furthermore, it is also looking to double its manufacturing capacity.
Talking to Autocar Professional, Lalit Kumar Pahwa, CEO, said, “We are doubling our current capacity at the Rudrapur plant from 100,000 units per month to 200,000 units next year. We have given samples to some of our customers and they are undergoing testing and validation. With some clients, we are at a stage of signing of business. In 2014-15, we should get at least get one more commercial vehicle OE customer.”
The company has a strong presence in the two-wheeler and CV segments with clientele like Tata Motors, Suzuki Motorcycle India, TVS Motor Co and Piaggio Vehicles.
Domestic OEs account for about 50 percent of the company’s revenue, the balance coming from the aftermarket and exports. The company expects to close 2013-14 with a turnover of Rs 200 crore, which is a marginal growth YoY. However, Escorts Auto Products sees a revival in 2014-15 as a result of many new projects, which are in different stages of implementation. In the export business, it expects a 20 percent YoY growth, both through an increase in existing markets also through new markets. At present, it ships its products to Europe, Latin America and Australia besides some neighbouring countries. On the back of this export demand, the company is looking to augment capacity by 30 percent at its Faridabad and Rudrapur plants.
According to Pahwa, over the past two years, the company has developed a range of new products with the help of its in-house R&D team. They include an in-cab shock absorber, mono shock absorber, parabolic for CVs and special products for the export market.
“Tata Motors is our big customer in the CV segment and we supply to their entire range of trucks. We are a big supplier to the Tata Ace and are getting close to be a single-source supplier,” said Pahwa. The company which provides suspension solutions for HCVs from Mahindra Trucks and Buses is also in talks for business with VE Commercial Vehicles and Daimler India Commercial Vehicles.