Precision Group aims for Japan and Korea

Solapur-based Precision Group is in advanced talks with partners in Europe to supply camshafts to the BMW 6 Series and Porsche Boxster. Should it come through, the Porsche deal will see Precision supply camshafts for 18,000 to 19,000 Boxster engines a week. The company is also in talks with General Motors to supply camshafts for the new small car being planned by GM and Suzuki. "We are in advanced discussions with (GM for) Poland. The product is ready at our end,” Yatin Shah, MD, Precision Camshafts, told Autocar Professional.

Precision already supplies camshafts to the European operations of GM, Ford and DaimlerChrysler. Its camshafts are fitted into German-built Mercedes Benz E-Class cars. Shah sees volumes in Germany growing to 6,000 camshafts a week. GM's Opel operation in Aspern, Austria also buys another 25,000 camshafts a week. "We are looking at volumes growing to 50,000 camshafts a week for all GM brands in the next eight months," said Shah.

Having established itself in Europe, Precision is now eyeing the Japanese and Korean markets. While Shah expects to generate business from Toyota Motor by 2010-11, penetrating the Korean market could be simpler and happen sooner. Precision is already a single- source supplier to Hyundai Motors India, and is in talks with Ssangyong Motor.

Precision's camshafts have already reached China through GM products, but it does not supply directly to any of the indigenous Chinese carmakers like Shanghai Automotive Industry Corporation (SAIC) or Chery Automobile. Shah said that his China strategy would be finalised after a study of the competitive pricing advantage of supplying out of Solapur.

For the domestic market, Precision – already a supplier to Maruti Udyog, Tata Motors, Mahindra & Mahindra, Force Motors, Avtec and Bajaj Auto – has bought five acres of land in Pantnagar at Tata's vendor park in line with that company’s expansion plans in Uttaranchal. Shah said that his company had already developed the camshaft for the Tata 1-lakh car.

Keeping these potential businesses in mind, Precision has firmed up plans to expand capacity from the current three million camshafts a year to 12 million camshafts per annum by 2010. The company has earmarked Rs100 crore for capacity expansion, business acquisition and product upgradation including components like hydraulic filters and valves. The company turnover stood at Rs 75 crore last year, of which Rs 30 crore came from exports. By 2010, Precision aims to earn 75 percent of its turnover from exports and reach a turnover of Rs 350 crore.