Sekisui DLJM opens new plant in Chennai to cater to Yamaha

Sekisui DLJM Molding, a joint venture of Sekisui Chemical Co Ltd and Dipty Lal Judge Mal, has opened its third plant at the Yamaha Suppliers Park in Chennai on May 8.

Sekisui DLJM, a prominent supplier to Yamaha in India, has invested Rs 30 crore in the new plant with total 9 injection molding machines installed. Yamaha has partially begun production at its new Chennai plant earlier this year and gradually Sekisui DLJM will expand the new plant with 11 more machines. Overall, the plant can take up to 35 injection molding machines. 

“Depending upon Yamaha’s schedule as they expand their production within next three years, we will have to invest another Rs 100 crore in a paint shop and other equipment. At present, we just make the injection molding parts and supply to Yamaha and they paint these products. But going forward, we may set up a paint shop here,” said Tadahiko Yoshioka, CEO, Sekisui DLJM.

The plant, which is spread across 15,000 square metres, has a total capacity of 100 tonnes per month. To start with, it will make nearly 30-40 parts numbers, gradually expanding to 60 parts. Sekisui DLJM supplies 50 percent of the plastic parts to Yamaha two-wheelers. The other big supplier of plastic parts to the Japanese two-wheeler maker is the Varroc Group.  

The company already has two plants in India, in Greater Noida and in Tapukara, Rajasthan.

The Greater Noida plant, which is dedicated to supplying injected moulding plastic parts to Yamaha, is logistically close to the latter’s Surajpur plant and is equipped with a paint shop. It also supplies some parts for Harley-Davidson (for its Street 750 superbike).

The Tapukara plant supplies to two-wheeler OEMs like as Honda Motorcycle & Scooter India, Suzuki and others. This plant also caters to passenger carmakers like Honda Cars India. Currently, both plants are running close to 80 percent capacity.

With around 65 percent business from Yamaha and 20 percent from HMSI, Sekisui DLJM is highly reliant on two-wheeler OEMs. Now, in a bid to diversify its product portfolio, the company is looking to supply to passenger car makers especially the Japanese OEMs in India.

“We are already in talks with some Japanese carmakers and a few Tier 1 players for new business and our initial target is to have 20-30 percent business from passenger cars in the next few years. The Chennai plant will be helpful for us,” said Yoshioka.

The company makes plastic two-wheeler parts such as window front, muffler protector, guide stopper, windscreen, straight screw, cover front, fender rear, inner assembly cover side assembly and for the passenger car segment it makes interior and exterior door handles, centre console, mudguard, window regulator, windshield washer tank, windshield cover and radiator grill.

According to Yoshioka, “We want to add much more value to the plastic parts and this technology is part of metal replacement which in a way is about lightweighting the vehicle’.

Sekisui in Japan has expertise in designing and making molds and rolling out final products. In India though, the company sources its molds from outside vendors and make them in house too.  

The company registered a turnover of Rs 150 crore in 2014-15 and expects to grow by 20 percent in 2015-16.