French component maker Valeo is girding up to localise around five global products for the Indian market during 2012-13 as it further consolidates its presence in India. Under the scanner are a complete range of thermal products in the heating, ventilation and air-conditioning (HVAC) systems that will be localised in the company’s existing facility for lighting in Chennai this year.
Among other products targeted for 100 percent indigenisation by Valeo India will be combination switches and window control switches as well as other switches for direction and lighting that are placed below the steering wheel. Products like thermal powertrain radiators and fan assemblies besides compressors will be localised during 2013 at Valeo’s Pune plant. Valeo is also considering introduction of wiper systems, produced in Chennai by its lighting division, during 2013.
Currently, the component maker imports some small thermal parts and is planning its new product line for orders in the pipeline from the passenger car segment. An upcoming model from a Chennai-based OE will be equipped with Valeo’s HVAC system while compressors will be supplied to other OEs in Pune and Chennai. Meanwhile, talks for wiping systems are still at an early stage with a couple of customers.
Auto Expo debutante
Valeo recently participated at the Auto Expo for the first time, showcasing its range of innovations designed to draw the attention of OEMs and also raise brand awareness. “Valeo currently works with most OEMs in the Indian automotive industry. Our ambition is to become a key player in this segment by using our wide customer portfolio and extensive product range to our advantage,” said P R Dhaamodharan, Valeo Group president and managing director of Valeo India. The innovations presented by Valeo include ReStart, Integrated Speaker Control Unit for parking assistance, Water Cooled Charge Air Cooler, LEDs and first shown to the public, a wi-fi rear camera.
Valeo entered the Indian market through a joint venture with the Amalgamations Group of Chennai in 1997 and manufactures clutches. It also has a JV with the Anand Group for friction materials. In 2005, Valeo established its R&D centre for providing research and development support to the company’s engineering activities globally. It inked another JV with the Ashok Minda Group in Pune for an access mechanism. This was followed by the establishment of Valeo Lighting Systems and Valeo Engine and Electrical Systems in 2008. Overall, Valeo has five production sites in the country and plans to localise its entire range of 16 product groups for India across the next four years.
India seen as growth powerhouse
“The Indian market will grow to be a powerhouse industry, and we believe we have products across all ranges,” says Derek de Bono, Group product marketing director, Valeo. In line with this strategy, he explains that Valeo is expanding the production capacities at four of its five facilities in India that produce clutches, starters and alternators, friction material and access mechanism in which the company holds a significant market share.
A greenfield facility for clutch systems is being established at Oragadam in Chennai, near Renault Nissan’s manufacturing facility, and construction is slated to commence soon. Expansion at Valeo's friction material plant in the city as well as its lighting division was recently completed as new customers were added to its client list. Its Pune facility for producing access mechanisms has also undergone expansion.
Bono says that special designs are being undertaken at the company's R&D centre for some of its products targeted at the small car market in India, while some designs are being sourced from its global headquarters and customised in India for the local market.
Designs are specific to product requirements, with Valeo’s R&D centre in Chennai designing and engineering the new generation of starters and alternators that will be launched in India this year. The supplier is also adapting for the first time in India an intelligent park assist system developed globally for small cars. It will be launched in the country next year.
At present, Valeo India produces five different products in the country of which three including clutches, friction material and front and rear lighting systems are manufactured at its Chennai facility. The other two comprise access mechanisms and electrical systems like starter alternators that are manufactured at Pune.
India R&D as global design centre
Valeo’s R&D centre houses 200 engineers and functions as a global centre supplying product designs to Chinese, European and American OEMs. The centre specialises in mechanical designs like CAD and simulation, application engineering and local adaptation besides working on specific product designs for customers.
The centre provides mechanical designs for Valeo globally and has expertise in technical commodity specialist supply development like castings, sheet metal, and forgings expertise. “The centre acts as a consultant to other centres,” remarks Dhaamodharan.
Meanwhile, the new crop of starters and alternators being designed at the R&D centre for lower output engines will target Brazil, China, Asean and Indian markets.
In terms of new lighting technologies, Valeo is open to bringing halogen and subsequently LED lighting to India if the demand arises. Globally, it is also working on future technologies like Xenon glare-free lighting for an OEM though no firm plan exists for introducing it in India.
The component maker, which focuses on technologies that cut CO2 emissions in diesel systems, downsizing technologies in petrol and smart driving, plans to grow in India through localisation. Thereby, it will offer multiple cost effective products for small cars and step up
its sales.
SHOBHA MATHUR