Pune, Oct 11 (PTI) Aurangabad-based auto componentsmaker Dhoot Transmission has made a foray into the electro-mechanical and electronic switches for the two and three-wheeler industry through an equal JV with US-based CarlingTechnologies, investing Rs 65 crore in a 1-million unitsplant.
The joint venture will cater to the fast growingtwo-wheeler and three-wheeler market, as well as commercialvehicles, agricultural and construction equipment segments andwill also be exported overseas through CarlingÂ’s globaldistribution network, the companies said here today.
The JV partners said the greenfield facility coming upon an 8 acre plot in Aurangabad will be operational in thefirst half of 2018 and will employ around 300 people in thefirst phase which can go up to 1,000 over the next three yearsas it sees a massive growth in demand for its products withthe introduction of BS-IV norms.
Though the JV partners refused to share financialdetails citing confidentiality clause, it has been learnt fromindustry sources that in the first phase, which will have 1million unit capacity, the JV will invest Rs 65 crore whichwill go up over the next three years to Rs 100-150 crore.
Dhoot is amongst the top four in the over Rs 6,500-crore domestic wire harnessing segment with over 30 per centmarket share in the two-wheeler industry and a sizeable pie ofthe CV industry. The 97-year-old Connecticut-based Carling isa global leader in circuit breakers, switches, powerdistribution units, digital switching systems and electroniccontrol switches.
Dhoot expects its revenue to rise to Rs 650 crore thisfiscal from Rs 500 crore, and move up to Rs 900 crore nextfiscal on the back of the incremental revenue from the JV,managing director Rahul Dhoot told PTI here.
He said the switches market for the two wheeler andthree-wheeler industry itself is over Rs 3,300 crore.
On exports, he said it will go up to 25 per cent ofthe total revenue from the present 18 per cent next year.
Dhoot Transmission has 13 plants in the country andone each in Britain and Slovakia and will set up a newfacility at the Volvo plant in South Korea, which may befinalised in a month or two.
Dhoot counts Bajaj Auto, Honda Motorcycle and Scooter,MAN Trucks and Volvo India, among others, as its key clientsin the country and ships its wire harnesses to Japan, Korea,and a few Western European markets.
"Our JV with Dhoot will help us consolidate ouroperational footprint in India. This JV will help us gaininsights into the market dynamics of the auto industry here,and localising our manufacturing capacities will enable us tosupply products at affordable prices," Christopher Sorenson,EVP of Carling said, adding the products made in Aurangabadwill be exported to various markets, including to the US.
The Mumbai-based global investment bank SinghiAdvisors was the sole advisor to Dhoot Transmission in thepartnership.
"The JV will enable us to diversify into untappedmarkets and help leverage technological competencies ofCarling to expand our product offerings," Dhoot said. PTI BENAARSY.
This is unedited, unformatted feed from the Press Trust of India wire.