2012 NCR Special: OCAP adds new clients, second plant on hold

OCAP Chassis Auto Parts, the Rajasthan-based component player, which had decided last year to focus on Indian clients, has been able to add a slew of clients to its existing roster. This comes a decade after it had focused exclusively on the export of parts to high-end marques. In addition to Mahindra Tractors, which was its first significant client, along with JCB and New Holland, the company has added Dana, Terex and JBM-Straprova, a new joint venture that will make bus bodies. While it has sent samples of its products to Terex, it will supply axles to JBM. Dana is the company’s largest customer for tie-rods. Apart from this, the company has increased its product portfolio to existing clients’ business.

With Mahindra Tractors, one of its first clients, OCAP made a significant breakthrough in its India strategy. Ravi Jaitley (pictured), head of sales and marketing, OCAP Chassis, told Autocar Professional, “We were able to build on this and have been able to get some tractor clients as we are now with a world leader in the tractor segment.”

However, as a result of the slowdown in Europe, OCAP has put on hold its plan for a second India plant. As a 100 percent export-oriented unit, the company has supplied its products to several high-end car marques such as Lotus UK, Lamborghini and Alfa Romeo. To this list, it has added McLaren. OCAP’s clientele in this high-end segment gives it access to manufacturing high-quality components, says Jaitley.

As a result of this, the company has in place strict quality controls. The company’s Italian technical staff has also visited the plant as well as India-based suppliers.

The company’s product range includes tie-rods, suspension ball joints, drag links, stabiliser links and axial links. OCAP has also supplied products to Landini, an Italian firm that makes components for tractors as well as axles for Carraro, parts for JCB Excavators in the UK and Dana Corporation in China, to mention a few.

On other fronts, OCAP Chassis which has a full-fledged design centre at its Bhiwadi unit has been designated as a hub for all design work for the Group which includes China as well. The strength of the design centre has been increased to 13 from 10 at present. Some months ago, the company set up an office in Russia. It also has clients in the Middle East, who are handled out of the Italian headquarters. The company has no plans to set up manufacturing facilities in these places.

OCAP says that one of its USPs is its access to European technology. According to Jaitley, “Indian customers are looking at us from a long-term point of view.”

According to Jaitley, the company has been able to retain its overseas clients and that has helped the company’s overall revenue stream. Apart from some parts that are bought back by OCAP, the company has also been supplying its products for the aftermarket in Europe, the UK and in Brazil in Latin America. As OCAP builds its India portfolio, the real impact of the Indian business on its revenues will be seen in the next fiscal, 2013-14. Given the current slowdown in the India, decision-making has got delayed, says Jaitley but hopes this will change in the near future.

OCAP’s three competitors in India include Rane (Madras), QH Talbros and Sona, all of whom are apparently operating under capacity constraints. This has worked to the advantage of OCAP which has some 20 percent spare capacity.

Established in 1975 by Ivano Giodarno in Italy, the company has plants in Italy, China and India. The company’s product mix is as follows: while components for the tractor/agricultural segment comprise 35 percent, that for trucks and buses is 23 percent followed by cars at 37 percent. Specific applications account for five percent.

BRIAN DE SOUZA