Denso reworks India strategy for local focus

Denso International India is reworking its India strategy after the restructuring of Denso India and the subsequent exit of its small motor business. As part of the restructuring exercise, Denso Sales India has been renamed Denso International India (DIIN) to improve its customer services and product competitiveness.

DIIN is exploring new business from “Indian-oriented customers” like Tata Motors and Mahindra through enhanced technical services. These services will include engine management systems spanning ECUs, fuel injectors, fuel pumps and variable valve timing products, leveraging Denso’s Japanese technology and services of Indian engineers.

Tech centre

A new technical centre, which is being established as part of the renamed Denso Sales India exercise, will promote local development and designs that meet market needs and facilitate the expansion of the India automobile business.

The board of Denso India had earlier decided to re-align the business segments to address operational and economic constraints and to focus on areas of future growth and profitability.

While Denso India received an approval to sell its small motors business to Denso Haryana, final approval and clearance for restructuring by postal ballot of shareholders will be received by December end.

Denso India produces electrical automotive components including magneto, capacitor discharge ignition, alternators, starters, fans, blower motors and wipers.

“We have a vision to export made-in-India products to ASEAN countries like Thailand and Indonesia but our first priority is to focus on the Indian internal business for a while,” says Ryoji Kumaki, Business Planning Section, DIIN. Denso’s ASEAN operations in terms of productivity and management are way ahead of those in India, which have been of late been posting losses. According to Kumaki, DIIN has to first catch up with its ASEAN activities envisioned till 2015, and then concretise ideas of exporting from India or opt for a mutual complementary system with ASEAN subsidiaries.

To grow in India, DIIN plans to develop techniques that are cost competitive and share these techniques with Denso Japan and Denso subsidiaries in the near future. “We would like to enhance outsourcing jobs like software designing and contribute to all Denso Group companies by taking advantage of Indian cost competitiveness,” elaborates Kumaki.

Maruti Suzuki is Denso’s key customer in India and the recent labour unrest at the carmaker severely impacted Denso Group companies. For the future, the focus will be on four key development areas – environment, safety, comfort and convenience technologies. Environmental technology would play a key role for the company due to the changing regulations of gas emissions and fuel efficiency that are expected to further accelerate in India over the next 10 years.