Manesar-based NTF India has evolved a plan to increase its plastic component share in several industries including the automobile sector. This is targeted at boosting turnover four-fold to Rs 120 crore by 2009.
For a start, it has entered into a 50:50 venture with the UK-based Thompson Plastics and production will kick off at Manesar towards the end of this calendar year. Thompson specialises in engineering plastics and makes body parts like fenders and hoods for off-road vehicles like tractors, farm equipment and construction equipment. It is OE supplier to the likes of Caterpillar, JCB and Volvo.
NTF is already in talks with JCB and John Deere in India to sell its new range of products. It will also be setting up a Rs 13 crore plant in Pune. “Moulds will have to be made as and when customers come and these are very expensive,” Naveen Jain, NTF India director, told Autocar Professional.
The company has also tied up with QuickStep Technologies of Australia which is into light special plastics largely used in rail coaches like the ones operated by the Delhi Metro Rail Corporation. The insides of these bogies are made of special plastics. NTF is also expected to target the aircraft industry at a later stage. Aircraft interiors are made of fibreglass which is again a specialised kind of plastic, says JS Khurana, general manager, marketing (automotive).
“QuickStep has been working on this technology for the last 16 years and India will be the first country where it will be produced. NTF will hold 51 percent in this venture and Quickstep 44 percent. A Japanese company will account for the balance five percent,” he says. The plant will be set up at a later stage.
Meanwhile, Jain’s passion for car kits and designs has seen his company diversify into manufacturing car kits in a big way. “It is a passion and challenge. While moving around the world, we saw the potential of car kits in India though there is no organised business,” he adds.
NTF has recruited two international experts from Thailand and Germany who have loads of experience in the car styling business involving add-ons. They work at the company’s Manesar plant for a week every month. By this month, the company will launch its products through OEMs. The first to officially sell car kits through its dealer network will be Maruti Udyog. NTF has developed a range of add-ons for the Swift.
“Initially, we will start with the Swift and then move on to other models. The add-ons will include around front and rear bumpers, under skirting, spoilers, etc. This will be first time that a carmaker in India will sell styling kits in an organised way. We will sell both through OEMs and our own dealer outlets,” Jain says.
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The company will not sell these products in the aftermarket. “It is a new concept and will take some time for this line of business to be accepted. In Malaysia and Thailand, nearly 65 percent of cars are fitted with add-ons either at the showroom when it is new (generally the case) or within a year when customers want changes,” Khurana says.
The kits will be priced in the Rs 30,000-Rs 60,000 range. NTF will also provide single add-ons for those who want just one part that could be priced around Rs 8,000. “We are aiming towards what is called DIY (Do-it-yourself) but in India people seldom have the right tools at home. The kits will be provided with an instruction manual so those who want to fit it themselves can do so.
“We also plan to train our dealer network on a zonal basis. The kit does not require the car to be tampered with which means that no extra holes need to be drilled. It will be easy for a person to fit this all by himself as it is a completely engineered part. Our target is not only the Indian market but Europe too,” Jain adds.
The company recently conducted a study to gauge the potential of the car styling market in India. This was done at different levels. The first started with the Auto Expo in New Delhi where NTF got a good organised response. At the second stage, the company approached a whole lot of car owners, dealers and accessory shops. “However, we thought that this would be a self-centric kind of study and hired an agency to carry this out. The results have just come in,” Khurana says.
The study showed that around 65 percent of cars went in for add-ons. NTF estimates just 10 percent to begin with which could translate into 1.8 lakh kits by 2010 (on an estimate of 1.8 million cars). The market can be valued at around Rs 500-600 crore annually.
Somchai Pinijudomkarn is chief designer at NTF India who came in from Thailand. According to him, for a country like India with its diverse cultures and people, it was not right to have a single concept of styling that would be accepted unanimously. “The idea was create an Indian styling though we would follow basic international styling trends. I wanted to create something made in India for Indians,” he says.
Somchai’s techniques of developing styling for cars are quite interesting. He takes a particular model of a car, makes prototypes and then uses his own unconventional ways to check if it is aerodynamic in nature. “Since we do not have hi-tech equipment, we drive a car with threads hanging from it at strategic places. We take pictures of it when it is moving and based on the path each thread takes in the breeze, we determine to what extent the add-on is aerodynamic in nature,” he adds.
Then the task is given to the engineering team to prepare a CAD. “Styling is a fashion statement and we have to come out with more designs per car. A design may get dated within 3-6 months which means we need to continuously gear ourselves on the styling front. Unless we are keep up with the designs flowing into the market, the company cannot survive,” says the Thailand-based designer.
NTF has adopted different types of technologies at its plant which include RTM, Woodstock (the process is called thermo compression) and injection moulding. The fourth is PU, a new technology where NTF will be the first company in India to use it for mass production of certain products.
PU has a range of uses and, according to Khurana, is perhaps the only material that meets pedestrian safety norms. Since it will be fitted on cars being exported, it will comply with international safety norms too. Exports will, however, take a year to kick off and Germany will be the first point.
NTF does business with Maruti Udyog, Fiat and Hindustan Motors. It is talking to five new companies for its existing line of business. The company exports to Japan, Spain and Italy. Transportation solutions form a vital chunk of business and talks are on with more customers.