Federal-Mogul India has introduced brake linings in India with its first offering – Ferodo-branded brake linings – launched at the Components Show held last fortnight at Pragati Maidan.
20 Feb 2014 | 8787 Views | By Brian de Souza
Federal-Mogul India has introduced brake linings in India with its first offering – Ferodo-branded brake linings – launched at the Components Show held last fortnight at Pragati Maidan.
Sanjeev K Singh, director – aftermarket India, told Autocar Professional that the company has so far not had any exposure in ...
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Federal-Mogul India has introduced brake linings in India with its first offering – Ferodo-branded brake linings – launched at the Components Show held last fortnight at Pragati Maidan.
Sanjeev K Singh, director – aftermarket India, told Autocar Professional that the company has so far not had any exposure in this segment and now its aim is to bring in brake pads and brake fluid products as well. So bullish is the company in this segment that it expects its share of business, currently negligible, to rise to 15 percent by 2017. “The Indian market is driven by asbestos. So we needed to bring in the latest and futuristic technology. This is the basis of our strategy,” says Singh. The technology has been a success in the North American and European markets and the company is confident that it can replicate this here.
Indeed, Federal-Mogul has begun to roll out the products from a new facility on the outskirts of Chennai. Supplies go to the heavy commercial vehicle segment in which the company has a claimed share of 90 percent coverage of the vehicle parc. While the brake linings were launched low-key a year ago, followed by full testing, the full-fledged introduction took place in mid-2013.
Federal-Mogul says it is delighted with the fact that it has received very positive feedback from customers, particularly in the country’s hilly areas, and was pleasantly surprised by the response that overshot its expectations. The aim is to double business in 2014, says Vinod Hans, director – sales, India.
As a global player, Federal-Mogul can bring in products from any of its worldwide facilities, to cater to a specific Indian requirement. For it, both the aftermarket and OE go in tandem and it hopes to kick off with customers in the latter in a few months' time.
Andreas Kolf, Federal-Mogul’s new India head, vice-president and MD, brings new perspectives to India, having been here over six years ago, and now comes with China experience. Explaining the company’s overall strategy, he underscores the fact that most of what the company brings is localised. The introduction of new technology is premised on getting volume. If this means direct imports that now get impacted by the forex factor, then that is a part of the reality of business in India.
Federal-Mogul’s product lines that are made locally include pistons, rings — cast iron or steel — and spark plugs, to mention but a few. Last year, the company localised its system protection products so as to bring it within reach of a wider clientele. The company is now hoping to localise gaskets and the estimated timeline, Kolf says, is by the end of 2014. The company will use a slightly different route this time, inking a joint venture with a local partner as part of its risk management strategy. Kolf says that rather than starting from scratch, the company hopes to get market share and customers.
Throwing light on the challenges of prevailing automotive markets, Kolf says as suppliers have to evolve products much faster than before to meet buyer needs, and that he admits can be frustrating. However, the company has constantly added to its products lines that include coolants, wiper blades and new service products.
Commenting on the slowdown, Kolf is of the opinion that there is nothing to be worried about. He stresses that capex has not been out on hold and using a cricket analogy, it is the ‘same run rate’.
While the CV segment has impacted Federal-Mogul’s performance, it has been able to leverage growth in the two-wheeler and tractor segments that has helped it reduce the cyclical impact.
Overall, Singh says that Federal-Mogul is, from an aftermarket perspective, trying to move away from its engines line of business even as it grows the business. The company is working on engine parts for two-wheelers, tapping clients like Harley-Davidson and Triumph. In terms of technology, it is weaning away customers from cast iron technology to sintered technology which scores from an eco-friendly and production standpoint. As examples, SGP Naidu, director - Application & Engineering, mentions products like LKZ, semi-inlays and new materials that are going into the manufacture of valve seats and guides.
According to Singh, Federal-Mogul is also looking at exports. While the company has aftermarket organisations all over the world, the Indian arm has no presence in North America. Now, the aim, Singh says is to overcome geographical limits and take Indian applications to the world. The aim is to do this in a focused manner and for this, the company has re-aligned its product management teams.
Photograph (L-R): Federal-Mogul India’s Andreas Kolf, Vinod Hans and Sanjeev K Singh are bullish on India and are keen to bring in the latest technology and products.