Deep Tec targets air suspensions for European aftermarket
The Rs 6.5 crore Deep Tec Group sees good business coming from its trailer suspension kits. A manufacturer of truck and trailer components with a range of 350 parts, Deep Tec took nine months to indigenously develop entire mechanical suspension kits after receiving a spate of enquiries at the last Automechanika Frankfurt.
These kits have been supplied to trailer bed manufacturers in the Middle East and Africa aftermarket. As a result, sales doubled last year. The company is investing Rs 10 crore next fiscal as part of its expansion plan. It has already pumped in Rs 1.5 crore towards new machinery from Germany and China which will be installed over the next three months.
Deep Tec will then start developing air suspension kits targeted for the European aftermarket. It will exhibit its mechanical suspension kits at this year's Automechanika Frankfurt. Its air suspension kits will be not be ready on time but Deep Tec will showcase Auto CAD drawings and other data for potential customers.
"Once we develop our own designed kits with help from our R&D, we will give them to the industry which are more competitive, lighter and have higher load capacity due to our new design," Gurmeet Kohli, managing director, told Autocar Professional. As an aside, it is relevant to mention here that over 150 auto component makers from India will be participating at Automechanika Frankfurt, a clear indication of the giant strides that the industry has been taking over the years. Needless to add, there will be a sizable representation from China too.
Getting back to the theme, Deep Tec has a facility in Khopoli near Mumbai where it makes 150 kits each month with a spare capacity of 50 more. This will be used by the end of the year when production hits 200 kits. By 2007, the company aims to manufacture 500 kits a month and achieve a turnover of Rs 12 crore ending March 2007. Saudi Arabia makes up half of its entire exports to the Middle East while Iran and Kuwait are also big markets. There is huge potential in Iraq where components are supplied out of Kuwait.
In Africa, Deep Tec's largest markets include Kenya, Ghana, South Africa and Nigeria. There are also a lot of inquiries for its kits from Australia. Deep Tec is a 100 percent export-oriented unit. The company does not yet supply its kits directly to original equipment manufacturers. "We have not tapped OEMs yet because we are an SME, and the quantum of our production is totally booked for the aftermarket," added Kohli.
Nonetheless, Deep Tec is in talks with two trailer makers in the Far East and Middle-East for an alliance where the details will be known in the coming year.
The company is keen on making its presence felt in India too though the difficulty lies in the fact that OEs develop their own suspensions and do not generally source whole kits from third parties.