Setco Automotive has won new business from Ashok Leyland to supply its 380 dia coil spring clutch assembly. The new clutch assembly covers both BS III and BS IV models of Ashok Leyland medium and heavy commercial vehicles (M&HCVs).
The annualised business for OE production vehicles alone would add approximately Rs 35-40 crore to Setco’s topline. According to Setco, the pull through of this on the aftermarket business would start immediately and grow to around Rs 50 crore topline from the third year onwards.
In addition, Setco and Ashok Leyland are working to offer retro-fitment kits to the current population of trucks, which would be another driver for topline growth of around Rs 20 crore on an annualised basis, starting from this year itself.
This new business will be incremental for the foundry business of Setco’s new JV Lava Cast, a world-class fully automated facility to manufacture fully machined high precision grey and SG iron castings.
According to R Sivanesan, senior vice-president (Quality, Sourcing & Supply Chain), “Ashok Leyland constantly upgrades the features of its products to offer leading-edge technology to our customers. The new clutch system supplied by Setco is one such step and will deliver better performance, longer service intervals resulting in lower maintenance costs per kilometre.”
Speaking on this development, Harish Sheth, CMD of Setco Automotive, said “This is a very prestigious win for Setco and it strengthens our symbiotic relationship with Ashok Leyland. I also complement the CFT teams of the two companies who have worked seamlessly over the past nine months following the complete NPD process and making this transition possible in such a short time. The supplies have already started to all the designated Ashok Leyland plants at Pantnagar, Ennore and Hosur and ramp up phase is on.”
Setco Automotive is a leader in the M&HCV clutch market and is ranked amongst the top five players globally. In the domestic market, it is the preferred brand of clutches for M&HCV manufacturers and has an over 85% of OEM market share. The company has a close partnership on the service and aftermarket segment of the business with OEMs and also sells under its own LIPE clutch brand in the aftermarket.
Recommended: Setco Auto to double its capacity by 2017