IP Rings (IPRL), part of the Rs 17,000 crore Chennai-based Amalgamations Group, has entered into an agreement with UK’s Eminox to set up a technical centre joint venture (JV) in Chennai. Both partners will have equal stake in the joint venture.
The centre will be responsible for the design and development of full Exhaust Aftertreatment Systems (EATS) ‘to cost effectively meet the Indian TREM V off-highway and BS VI Stage 2 on-highway emissions standards. TREM V emission norms for off-highway vehicles will come into effect from April 2024, and the BS VI Stage 2 will kick in from April, 2022.
“We have very ambitious plans with IPRL to develop and supply EATS for a range of diesel and CNG engines used in off-road and on-road across the Indian market,” says Jog Lall, OE sales and marketing director, Eminox.
According to a source, a back-of-the-envelope calculation puts the market potential for aftertreatment solutions for commercial vehicles and tractors at nearly Rs 9,000 crore, in India. An additional opportunity could be retrofit aftertreatment solutions for older vehicles. To tap the potential well enough, local manufacturing operations will be crticial. And that’s what both the partners may look at in the near future. It is learnt that the Amalgamations Group is looking at doubling the turnover of its components business group to over Rs 4,000 crore, fuelled also by the new business moves.
Under the JV, Eminox, which is a 68 million pounds sterling (Rs 700 crore) business unit of the 135 million pounds sterling Hexadex Group of engineering companies, will bring its specialised capabilities in emissions control solutions to the Indian market, while IPRL’s extensive domestic market presence and knowledge is expected to help tap growing opportunities in the Indian market.
Eminox has over 42 years’ experience designing and manufacturing emissions reduction technology for heavy duty vehicles and equipment, with its products found in select leading heavy commercial vehicles and off-highway vehicles in Europe.
“IPRL started its journey into the EATS market just over a year ago and has been strengthening its engineering capability in this domain, knowing the challenges that lay ahead with upcoming emissions legislation. Working alongside Eminox will help accelerate our product portfolio development, in line with the call for ‘Atmanir Bharat’ (self-reliant India),” says Meenakshi Sundaram, CTO, Amalgamations Components Group.
This new partnership by the Amalgamations Group comes four months after IPL, another Group company, inked a JV with USA-based Shaw Development, to manufacture DEF (diesel exhaust fluid) solutions for heavy duty vehicle (CV and Off-Road) and diesel engine manufacturers. The Chennai- headquartered Group may be looking at another inorganic move or two to tap the growing opportunities arising out of the advancement of regulations in India.