Hueco India to set up second facility

Pune-based Hueco Electronic India plans to set up a second plant in the vicinity of the area. The wholly-owned arm of Hueco Electronic GmbH (Germany), set up three years ago, has become a major global source for regulators, relays, throttle-position sensors and ignition modules. It makes over 200 products.

The new facility will be operational early next year and the company has earmarked 500,000 euros for this project (excluding machines), said business unit director of the automotive division, Christian Westerkamp. The company has invested four million euros in India thus far. The parent has another plant in Northern Ireland which makes relays, ignition modules, glow plug sensors and fuel transfer pumps for several OEMs and supplied through Tier-1 suppliers like Bosch, Hella and Siemens.

Westerkamp said nearly 95 percent of its requirements for ignition modules, relays and fuel transfer pumps are met by the Indian operations. The latest addition is ignition coils which will be supplied from the new plant. Hueco has four dealers in India who cater to all cities and towns in all the regions except East India. It plans to conduct training programmes in the local language to educate mechanics on the advantages of Heuco’s products.

The company caters to about 65 percent of cars and 75 percent of commercial vehicles. The second plant will also make 24-volt automotive electrical components which will meet the total needs of CVs including top-end heavy duty vehicles.

FOCUS ON HCVs

Hueco India is in talks with three big Tier-1 companies and a clutch of OEMs for supply in the domestic market. At present, close to 95 percent of the products meant for cars and LCVs are exported. Soon it will be focusing on HCVs and some of the parent’s key customers are already present in India.

The local content for products earmarked for the Indian market is nearly 90 percent and 15 percent in the case of exports. Westerkamp said plans were on to increase this to 50 percent next year. Globally Hueco exports 75 percent of its products to Europe, North and South America, Africa, the Middle East and Asia.

About 30 percent of the products are meant for OEMs with the balance off to the aftermarket. The company hopes OEM business will grow in global markets with the same model replicated in India too. Last year, the group posted a turnover of 35 million euros of which the auto division contributed to one-thirds. Its other businesses include lighting (non-automotive) and manufacture of printed circuit boards. Hueco plans to enter India’s lighting segment.

T MURRALI