Taurus, Norma join hands

Jamshedpur-based Taurus Flexitubes and the German company Norma Group have entered into a partnership to manufacture high pressure fuel and oil tubing systems for the domestic and overseas markets. The partnership covers two projects, the first of which will make tubing systems for a commercial vehicle and passenger car manufacturer.

Norma is a leading supplier of connection solutions for the automotive and industrial segments. The 350 million euros company gets over 60 percent of its revenue from the automotive sector. It makes tubes with metal, rubber, plastic and combination of three for cars and commercial vehicles. About 70 percent of its products go into passenger cars. It is present in 20 countries including China, Spain, Poland and Australia through partnerships, joint ventures and subsidiaries.

WIN-WIN SITUATION

In India, the two partners will soon decide the future shape of their cooperation. While all options - joint venture, technology tie-up and equity participation – are open, it is most likely that a joint venture will emerge here. This will allow the partners to leverage the inherent capabilities. Taurus is a strong player in the airbrake rubber hoses and fuel line hoses business. And, Norma manufactures hoses and end connections as well, selling them both individually and as a system. For the India project the company has decided to import end connectors and use the hoses manufactured by Taurus.

At a latter stage, plans are to manufacture the end connectors either at Pune, where Taurus makes flexible hoses and assemblies or in Chennai. “This will be a win-win situation for both the companies,” area sales manager (automotive division) for Italy and India, Andrea Carta said. The managing director of Taurus, Rishi Kshettry added that the inherent strengths of the two partners would guarantee success.

CORE STRENGTH

“Supplying entire tubing systems will help OEMs trim cost. Moreover, proposed norms warrant that OEMs switch from metal and rubber to polyamide hoses. This will play to our strengths,” he said.

Norma makes four families of products including high pressure fuel and oil hoses, low pressure air and oil hoses, water and charged air pipes and clamps. It is a leading manufacturer of clamps, churning out more than one billion pieces in different sizes and types. In India the company initially plans to introduce high pressure fuel and oil hoses, and clamps, with other products following in phases, Carta said.

Taurus Flexitubes has an associate company, Indo Australian Hose Manufacturing, in a joint venture with Esdan Plastics of Australia. It also has a technology tie up with Kangsberg of Norway for manufacturing plastic fittings for commercial vehicle air brakes. It has similar arrangement with Menbers of Italy for electrical coils for ABS application and battery cut offs.

T MURRALI