German Tier 1 supplier ZF is doubling down its focus in India through a significant investment of around 200 million Euro (Rs 1,653 crore) and strategic consolidation of its business domains with renewed impetus to drive growth over the next decade.
Commenting on the strategic imperative for India, Dr. Holger Klein, ZF Member of the Board responsible for Asia Pacific and India said: “Despite the current severe situation regarding Covid-19 in India, the ZF Group strongly believes in the long-term growth potential of the region. Therefore, we are launching a Refresh India four-point strategy. This includes an intensive plan to rapidly grow our business in one of the largest automotive markets in the world. We plan to invest around 200 million euros in the next few years to aid this growth through product launches, manufacturing and engineering footprint expansions, hiring and other developments across all business domains.”
Dr. Klein said that ZF already has a leading position across various technology solutions in the automotive and non-automotive business segments. It is also well positioned to shape the future e-mobility and next-generation technology in the Indian market through its global portfolio. The Tier 1 is partnering with Mahindra Racing for Formula E supplying silicon carbide-based power electronics alongside the electric motor and transmission. This partnership allows for endless possibilities for future introduction of such advanced technologies in the region as these technologies get tested under the harshest conditions.
“In the commercial vehicle space, the acquisition of WABCO bolsters our manufacturing and engineering capabilities to increase the content per vehicle. In this next phase of growth, we will also continue to leverage India as a global sourcing hub across four areas: R&D majorly focusing on software development, IT & digital innovation, manufacturing and material sourcing,” said Dr. Klein.
ZF’s Refresh India four-point strategy revolves around 4 key areas and supports the strategic repositioning of the unique ZF Brand identity in the country. The new and evolved brand identity of the company in the region will be represented in this new phase through the Refresh India four-point strategy growth areas.
- Readapt: Through higher levels of localisation and a strong thrust on design-to- market-solutions. ZF aims introduce advanced global technological solutions at an affordable value for the Indian market.
- Reinforce: India will become a global hub for worldwide requirements across R&D, IT & digital innovation, manufacturing & material sourcing. Substantial progress has been made in the recent past to utilise the Indian supplier base for child part requirements for the various divisions. ZF will continue to leverage India’s manufacturing capabilities by expanding its footprint in the country. The Group will set up a new manufacturing facility in Chennai along with plans to increase the utilisation of other facilities.
- Retain: Having won the distinction of Great Places to Work. ZF Group will continue to set high standards for performances in the areas of safety, quality and sustainability. It will continue to unlock its innovation power in the region by investing in the overall development of its employees.
- Restructure: ZF Group divested its shareholding interest of 49% in Brakes India to meet the Anti-Trust guidelines of CCI, post the acquisition of WABCO. Furthermore, ZF Group is a majority stakeholder of WABCO India and is undertaking necessary next steps to ensure all regulatory guidelines are being adhered to. The integration of WABCO into the ZF Group is well underway and is expected to be completed by the end of the year as planned.