Fleetguard eyes Rs 2,400–2,500 crore in revenue from auto filtration market
The company boasts a comprehensive filtration product portfolio catering to over 200 OEMs as a Tier-1 supplier.
Filtration major Fleetguard is shifting gears to grab a significant share of India's booming Rs 10,000 crore auto filtration market, eyeing a revenue range of Rs 2400–2500 crore from the segment this fiscal year.
"That is the potential as far as automotive filters are concerned," remarked Niranjan Kirloskar, MD, Fleetguard Filters, in an interview with Autocar Professional. He underlined the vast market size extending to billions when encompassing other segments like industrial, water, and food
processing. "We have seen a growth of approximately 15% in the previous year, and we anticipate a similar growth rate for the current year," he added.
Currently, exports contribute 20% to Fleetguard's turnover, though JV restrictions limit direct sales to non-Cummins customers. The company boasts a comprehensive filtration product portfolio catering to over 200 OEMs as a Tier-1 supplier, to name a few like Tata Motors, Cummins, JCB, Ashok Leyland, and Daimler. Its expansive aftermarket network of 220 distributors and 45,000 plus retail outlets ensures 99% plus filter availability across India.
Fleetguard stands out for its proactive approach to capex, distinct from traditional demand forecast-based models. When a production line hits 70% capacity, the company initiates a tailored expansion plan with lead times ranging from 6 months to a year. This strategic manoeuvre helps them anticipate demand surges and avoid fulfillment challenges during peak periods.
"We follow a 'perfect order fulfillment' programme with customers, replenishing their stocks within 24 hours," Kirloskar explained. "Our production and capacity expansion is driven by actual consumption and orders, not mere forecasts," he added. Currently, only one line needs investment, while others have ample headroom.
At the helm of Fleetguard since 2002, Kirloskar is credited with diversifying the company's offerings beyond traditional filtration solutions to cater to evolving needs across on-road and off-road applications globally. His prior experience as a practicing lawyer at Bombay High Court, he believes, has enriched his leadership and problem-solving approach.
As the conversation shifted to alternative fuel vehicles, Kirloskar emphasised Fleetguard's preparedness for upcoming fuels like biofuels, CNG, LNG, or hydrogen. "We're already supplying filters to alternative fuel vehicles running in India today," he affirmed.
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