NTTF Industries Pvt. Ltd (NTTFIL) has signed a joint venture pact with the 1.3 billion euro Kostal Group of Germany and is setting up a new unit at Katpadi, Vellore District, near Chennai. The new unit, which is slated to begin production soon, will manufacture a range of automotive electrical switches including column and panel mounted switches, power window switches, pinch protection devices and power window regulators.
According to Anand B, General Manager-Marketing, NTTF, “We have been making electrical switches for the past two decades but now following our tie-up with Leopold Kostal GmbH and Co., KG, the auto electrical business will be handled by the new unit called Kostal NTTF Automotive India Pvt. Ltd, with the German partner having a 70 percent stake. Kostal, which is a leading player in the electrical switches segment in Europe, is bringing in high-end switches for the Indian market. We hope, with an established partner in place the JV would penetrate into Indian market in a big way with such high-end auto electrical switches. It also gives an opportunity for Indian OEMs to look for world class technology offered through local manufacturer.
Advanced products
Kostal, which has a consolidated turnover of 1.3 billion euro and having operations in 26 locations in 14 countries, will bring in a range of modern products as also integrated multiple applications in the steering column-mounted switches with the best ergonomically designed features of lighting, wiper, hazard, turn Signal, etc.
The Kostal Group is bringing its technologically advanced auto electric products in India for the first time. NTTF, its JV partner which is renowned for its high-quality tooling for automotive products, also has a JV with Aisin Seiki of Japan, for supply of parts for door latches, window regulators, door hinge assemblies and door frames to Toyota Kirloskar Motor, Bangalore and its JV companies and tier 1 companies.
NTTF has two production units, one at Peenya Industrial Area, Bangalore and the other at Katpadi in Vellore District of Tamil Nadu. Both plants are equipped with sophisticated tool room and components divisions for the manufacture of plastic molded and sheet metal components. The Bangalore unit has Centralised Design and Engineering Department supported by state-of-the art-in-house CAD/CAM/CAE facilities, RPT and 3D Laser Scanning/Digitising facilities.
Talking about the evolution of the company, Anand says: As a pioneer in the tool and die making segment, NTTF boosted its core competency by developing precision tools and components to automotive industry n India. We set up commercial operations in 1963. In 1998, we started working with Toyota and its group companies in India and since then, we are one of the major suppliers for the Toyota Group.
At present the company is a supplier to Toyota, Maruti Suzuki, Mahindra & Mahindra, Force Motors, Tata Motors, Eicher Motors, HM and Reva Electric Car Co., among vehicle manufacturers. In the auto ancillary segment, it supplies to companies such as Brakes India Group, Mando Brakes, Visteon, Aditya Auto, Subros, ABB and many more. The automotive segment constitutes the majority of its business and only 13 percent is non-automotive. Of the 87 percent automotive sales, around 54 percent comes from top five customers including the Toyota Group, Maruti Suzuki, Subros, Brakes India and Mahindra & Mahindra.
Strategic Move
Anand says, "We supply the body parts and door parts to Toyota. On an average, we supply 4,000 to 5000 vehicles sets a month. We are the Kanban suppliers to the company on a daily basis under milk run logistics system. Around 40 percent of the total turnover comes from Toyota Group". It also provides parts to alternator and power train application to Visteon. "We have capacity of up to 300 tonnes stamping as well as injection moulding. Keeping in mind the upcoming business, we are already expanding our facilities", reveals Anand.
Strategically, the company has focused its business for Brake System segment. Anand says, We are the major suppliers of brake fluid reservoir tanks and have a major market share. We are the sole supplier to Hyundai through Mando Brakes and supplying to the tune of 50,000 units a month, all variants in total. In a similar capacity we supply to Brakes India. We are also supplying to Continental Rico.
The company, which recorded a turnover of Rs.62.5-crore last fiscal, has also developed an exclusive product for the Tata Indigo XL Model. Anand explains, "We have developed a brand new rear blower/AC Control switch wherein, the passenger sitting at the rear will have access to the AC/ Blower switch. We have developed this product right from concept design through total product supply. We can develop such a device for other OEMs too.
Despite the current economy situation in the market, the company’s order book position is quite strong. "We are getting new orders from the new entrants", Anand adds.
FACTFILE
• A premium Tool Room in India
• 45 years of experience in tool and die making
• Sales turnover of $10 million
• 1959-First Training Centre in Nettur, Kerala
• 1963-NTTF Industries Limited formed
• 1964-Production centre in Vellore started
• 1994-Became a public limited company
• 1998 – CAD/CAM/CAE Technology Centre full service supplier from concept to product
• 1999-JV with AISIN SEIKI, Japan
• 2008-JV with Leopold Kostal, Germany