Brembo Brake India, the 100 percent subsidiary of the Brembo SpA, the world leader in design, development and production of braking systems for the automotive industry, is setting up an all-new plant in Chennai.
It is learnt that the Italian advanced brake manufacturer’s new plant in Chennai will cater to the requirements of Royal Enfield and other potential customers (such as India Yamaha Motor) with manufacturing operations in the region.
The new Chennai plant is part of the company’s ongoing expansion plan in India. Brembo Brake India, which is also celebrating its 10th anniversary in CY2018 of independent operations in the country, will see gains from the upcoming safety norms on mandatory fitment of the combined braking systems (CBS) on two-wheelers up to 125cc and anti-lock braking systems (ABS) on all two-wheelers bigger than 125cc.
Luca Bottazzi: “We are in the final stage of setting up the new facility in Chennai, specifically for our customer(s) located there."
“We are in the final stage of setting up the new facility in Chennai, specifically for our customer(s) located there. Our approach is to be near our customers, just like our Manesar facility caters to the customers located in that region,” revealed Luca Bottazzi, managing director, Brembo Brake India.
The proposed Chennai facility is expected to commence operations by Q3 CY2018 (October onwards). The India MD does not deny the export possibilities from the upcoming Chennai plant. “Yes, it can be used for exports too. There are many possibilities,” he told this publication recently.
The top company official, however, refrained from disclosing the investments earmarked for the upcoming plant. The company’s main manufacturing facility in India is based in Chakan (near Pune) and has an assembly unit located in Manesar that caters to its customers around that region.
Brembo’s India footprint
The Italian brake manufacturer has a large presence in India. It claims a market share of more than 50 percent in the domestic motorcycle segment, which comprises nearly 65 percent of the overall Indian two-wheeler market. The company has positioned its Bybre brand (Bybre means by-Brembo) for India and similar markets around the world.
Brakes developed under the Bybre brand are fully developed for mass markets like India. The Bybre products, however, are developed based on the Italian engineering and design concepts. “We are present in different markets in India, and the motorcycle segment is the most important category for us here. We have more than a 50 percent market share in the motorcycle segment in India. The coming years will be very interesting for us, thanks to the new safety regulations,” Bottazzi told Autocar Professional recently.
All products supplied under the Bybre brand are 100 percent localised at its production plant in Chakan, near Pune. The company manufactures calipers and master cylinders, and discs (for front and rear wheels) for two-wheelers at its Chakan plant.
The disc brake assembly includes all these components put together and supplied to customers in India under the Bybre brand. These products can even be seen on the 110c Hero MotoCorp commuter motorcycles that criss-cross the country.
Brembo’s Chakan-based manufacturing plant currently has an annual installed capacity of 3.5 million sets (one set comprises of one caliper and one master cylinder) and 2.5 million units for making discs (single disc). Under phase three of the ongoing expansion drive, the company plans to increase the present capacities to four million units (sets of calipers and master cylinders) and three million units (of discs) this year.
Sudhir Nirantar: "Now it is no more about the manufacture of calipers and master cylinders but it is about the ability to integrate the ABS modules that the customers may demand."
The company has invested about Rs 150 crore that includes investments made at Chakan and in Manesar facilities. “Thanks to the safety regulations, the manufacturing capabilities will have to be upgraded. So now it is no more about the manufacture of calipers and master cylinders but it is about the ability to integrate the ABS modules that the customers may demand,” disclosed Sudhir Nirantar, executive director and CEO, Brembo Brake India (pictured above) as he explained his company’s approach to tap the incoming opportunities in the near future.
In CY2017, Brembo Brake India’s turnover stood at Rs 578 crore. The company's average growth rate for the past five years has been more than 17 percent YoY. The senior management expects the business to continue growing at this rate in the coming years too.