Component manufacturer Flexider visited India last fortnight as part of the South African Trade and Industry delegation to scout for possible alliances with exhaust system manufacturers. Flexider manufactures flexible decouplers and supplies to large exhaust system manufacturing companies like Magneti Marelli and Faurecia.
Europe is Flexider’s largest market with manufacturing facilities in Italy and Poland. The company set up another plant in South Africa six years ago from where it plans to export its decouplers once it develops alliances in India.
Speaking to Autocar Professional, Andrew Schubart, operations manager of Flexider, South Africa, said: “This is a fact-finding mission. It’s all about identifying the region, understanding the industry better, understanding where it’s headed and looking at what opportunities exist. We are also looking at opportunities to import products from India like stainless steel wires and couplings.”
Since India is a highly price-sensitive market unlike Europe, it will be a challenge for Flexider to quote competitive prices compared to local manufacturers, especially when it initially plans to export its products here. Commenting on being competitive, Schubart said, “There are a lot of similarities with the market in South Africa. We can design and supply various exhaust solutions, depending on what is required and we can adapt to the needs of the customer. I know that there are a lot of import taxes that come into play in India. But there are the special economic zones where there are tax breaks so we can be competitive.”
Andrew stopped short of naming any company in particular that Flexider is targeting for its Indian foray but expressed an interest in forging ties with Magneti Marelli by using European synergies as a starting point.
Flexider’s next step will be to evaluate vendors and follow up on the meetings it had on the Indian visit.
ANAND MOHAN