October 4, 2013: In another example of India’s growing strength in the automotive world globally, Carraro India, a subsidiary of Italian auto ancillary maker, Carraro Group, has inaugurated an all-new assembly line to roll out its new transmission systems (and axles) for big 100-120hp tractors.
Meant for exports as well as the domestic market, the new assembly line at the company’s Ranjangaon plant can roll out up to 5,000 units per year of these advanced transmission systems (called T10) for big tractors. It is to be noted that India is the only country where Carraro Group manufactures its transmission systems for farm and construction equipment.
Alexander Bossard, CEO, Carraro SpA, said, “We make 97 percent of all our transmissions in India.” According to officials, the company has invested nearly one million euros (Rs 8.4 crore) in setting up the test bench and the new assembly line in Pune. Highlighting the automation features of the assembly line, Massimo Zanco, chief operating officer, Carraro India, said the test bench is completely made in India.
Marking another substantial development to consolidate its Indian footprint, Carraro has also expanded its R&D operations (under a separate entity called Carraro Technologies) in India.
When it first began its R&D operations in Pune in 2006, the firm used to provide engineering services to its counterpart in Italy where actual prototypes were developed and designs were approved before mass production would start in India. However, now with the expansion of R&D capacities in Pune, the company will be now capable of making prototypes of transaxles (transmission systems and axles) and other crucial components locally, which would translate into quicker development of these components.
As part of its R&D expansion, the company has added a training centre, a tool room designed for disassembling and studying axle and transmission systems, and plans to install a host of new equipment which would, as per the plant officials, further benchmark production processes.
In addition to the new assembly line at the Ranjangaon plant, there are seven other assembly lines which roll out a total of 42,000 transaxles (transmission + axle systems) for tractors and 25,000 units of transmission systems for the construction equipment sector, primarily the backhoe loaders. The company also produces T3 (for 35-45hp small tractors) and T5 (55-90hp general purpose tractors) transmission systems.
While India is a small market for big tractors (100-120hp) with mainly the Sonalika Group manufacturing and selling these here, the T10s would be primarily exported to Europe.
Setting up a manufacturing operation in India will give Carraro considerable benefits, particularly in staffing costs. As against Europe, where employee costs stand in the range of 15 to 20 percent of a company’s overall expenses, the same in India can be contained within five percent. Without disclosing any numbers, Balaji Gopalan, Asia Pacific HR director, India & China region, Carraro Group, agreed to the rough estimates.
According to our sources, Carroro India has recently supplied prototypes of T10 transmission systems to Sonalika and Escorts in India and is yet to receive orders from them.
On the export front, it has already exported some volumes of T10s to foreign players such as Pol-Mot of Poland, Erkunt Tractors of Turkey and others.
Carraro India supplies the T5s to Mahindra & Mahindra, Escorts, Punjab Tractors, Sonalika, TAFE, and many others in India. These are also exported to Landini Tractors of Italy, Alcelik of Turkey, Zetor Tractors from Czech Republic, Farm Trac (Escorts’ global business) and many others. On the other hand, New Holland India is one of the major buyers of Carraro’s T3 transmission systems made at Ranjangaon plant.
While India’s contribution stands around 10 to 15 percent of company’s global sales, the officials say that the Indian operations are biggest outside Italy. Fulvio Lo Conte, engineering & innovation drivelines director, Carraro Drive Tech SpA , disclosed that “Indian R&D activities account for roughly 45 percent of the company’s global R&D operations.”
AMIT PANDAY
Photograph (L-R): Samir Puranik, director, manufacturing, Carraro India; Alexander Bossard, CEO, Carraro Group; Enrico Carraro, chairman, Carraro Group; Daniele Mancini, Italian ambassador in India; and Massimo Zanco, COO, Carraro India.