Sharda Motor opens R&D centre

Exhaust manufacturer Sharda Motor Industries inaugurated its state-of-the-art R&D centre in Chennai recently. The Rs 30 crore facility took two-and-a-half years to build. It is expected to design and recommend technological changes, all at Indian cost levels, according to the company’s management. Sharda Motor Industries sees this unit as a stepping stone to becoming a global player and plans to use Chennai as an export hub in the near future. The R&D centre will also see a further investment of around Rs 40 crore by the end of 2014.

Ajay Relan, managing director of Sharda Motor Industries, summarises the purpose of the R&D centre in one sweep -- “To take a car from a concept to the product level from our end.” The typical process would take around 24 to 36 months, he adds. “Usually,” he said, “the OEMs give us a solution and we manufacture it for them. We want to come to a position where we can suggest technological innovations that eventually get incorporated in the OEM’s solution. That’s where the R&D centre will play a crucial role.” The R&D centre is also the need of the hour, he says: “If we hadn’t set this up, we would’ve been left behind.”

Speaking about the product development process, Dr Sivanandi Rajadurai, head of the R&D centre, says: “When the OEM conceives the car, it will first develop the powertrain and we’re involved from the intake to the exhaust. We first understand what the regulatory demands are; this depends on where the OEM plans to launch the car. We look into the noise targets and durability demands according to that particular terrain.” This is followed by the actual production phase that includes manufacturing of several prototypes and eventually the final product after taking into consideration several emission targets.

“This is the first ‘Indian’ company that’s investing money from design to validation for a muffler system,” Relan adds. “This is great and helpful for India. This may not be now but five years down the line.”

Sharda Motor has 13 plants across the country and two plants in Chennai that manufacture exhausts. They have been in operation since 1998, supplying components to Hyundai on a regular basis. Its other clientele includes Mahindra & Mahindra, Tata Motors and Maruti Suzuki. In the muffler and exhausts segment, the company has a healthy 38 percent market share.

Asked if the company plans to go global in the near future, Relan answers with an emphatic yes. “Even if we go on a global level where we see ourselves establishing plants outside India, we’ll still remain Indian.” But he insists that it is too early to talk about establishing plants outside India as of now. “The typical life cycle of the process would be around three years,” he says.

Relan adds that the company had a good outing at the Auto Expo last month. “The response at the Auto Expo was fantastic. It’s too early to say if the talks there convert to any business orders. There was big interest from global companies.” He also expresses confidence in the industry and says that exhausts and catalytic converters have a bright future. “Emissions are coming down, technology is improving with each Euro or BS regulation, it’s the ‘in’ thing for tomorrow.”

On the growth front, Relan says, “Growth has slowed down but it’s not gone negative. There’s still a lot of growth.” Sharda Motor recorded a turnover of around Rs 2,500 crore in 2010-11 and is targeting the Rs 3,000 crore mark for 2011-12.