KSPG to supply exhaust-gas technology to Indian CV manufacturer

Tier 1 supplier KSPG, which is participating at the Auto Expo at Pragati Maidan (German Pavilion in Hall 10) is looking to expand its local production base in India.

With almost 3.8 million units produced in 2015, the Indian market for vehicles up to 3.5 tonne GVW once again recorded a positive trend and in fact was up 5.9 percent on the 2014 figure. "Our focus in India this year is on our core competencies of emission reduction and reduced fuel consumption," says KSPG CEO Horst Binnig. He adds, "The Indian subcontinent is also facing another tightening in emission targets for road traffic, and efforts in this direction are gaining momentum all the time."

Fully in line with this trend is a recent large order in the double-digit million euro range, which an Indian manufacturer placed with this international specialist in emission control and engine efficiency. It concerns modern electric-motor-driven exhaust-gas recirculation systems, to be delivered as from December 2016 for a series of mid-size commercial vehicle engines. These engines fulfill India's emission standard BS-IV (comparable with Euro 4). The standard has already been introduced in northern India and will gradually take effect elsewhere in the country by April 2017. Instead of SCR catalytic converters, Indian automotive manufacturers largely use exhaust-gas recirculation systems for achieving the limits allowed by BS-IV.

At present, the KSPG Group employs a workforce of around 900 in India; its two locations in Pune and Ahmednagar generated sales of around €40 million (Rs 305 crore) in 2015, an increase of 26 percent over 2014. Apart from plain bearings, bushes and thrust washers, the Group manufactures components for emission reduction such as exhaust-gas flaps, exhaust-gas recirculation systems and valves as well as pumps for cars and commercial vehicles. The company also operates on the aftermarket.

KSPG Automotive India currently has two plain bearing production locations, in Takwe and Ahmednagar. The product range comprises engine bearing shells, bushes and thrust washers for cars and trucks, for agricultural machinery and rail vehicles.

The company’s clientele includes Maruti Suzuki India, Mahindra & Mahindra, Tata Motors, Honda, Cummins and Kirloskar Oil Engines. The company also supplies the aftermarket. Besides the plain bearings for IC engines, the product line-up includes slide elements for other assemblies such as transmissions and brakes. The Takwe plant also manufactures oil, coolant, vacuum pumps and EGR valves. 

For many years now, the KSPG Group has had a successful partnership with India's Shriram Pistons & Rings, in which it holds a 20-percent stake. For fiscal 2014-15, Shriram Pistons & Rings reported sales of around €170 million (Rs 1,300 crore).