Repport - 02/Dec/2014:: US based auto parts manufacturer Tenneco is looking at boosting its operation in India. The company is setting up a new manufacturing facility in Gujarat which is expected to be operationally next year. In an interview with Deepanshu Taumar, Deputy Managing Director, Tenneco India Pankaj Kapoor, says that the company is focusing on increasing product localisation and technology upgrade at its plants in India. Excerpts from the interview: How do you see the \" Make in India\" campaign? We appreciate the imitative taken by the new government to launch its \'Make in India\' campaign recently and we feel especially automotive industry has the capability to take the full benefit of this campaign and make India one of the world\'s manufacturing hubs for many global companies. This will also lead to more localisation and the opportunity to achieve economies of scale for both international and domestic suppliers to help them become more competitive and help them grow their business in India. This will also help grow the overall economic activity in India with an increase of the manufacturing sector\'s share of GDP. What is the current level of localisation and how do you see it in the near and long term future?
Ride Performance : Last few years this had been area of prime focus for us and we have already achieved this year around 88%of localization and in next couple of years we intend to increase this upto 95% as our Engineering and Sourcing team have worked hard in developing some key components locally by vertical integration of some parts and also by sourcing with local suppliers after a very thorough validations in India Clean Air : We have achieved local content of 80% in clean air and will reach to a level of 84% in few years for our value addition excluding coated substrates. Tenneco works with many domestic and global companies in India as well as abroad. How tough is customisation of parts for particular country or region?
Customer needs in Emerging Market like India may differ partly or sometimes entirely when compared with that of Mature Market regions. While performance and reliability expectations are more-or-less the same, product robustness and most importantly \'target costs\' expectations are different. This poses a unique challenge for developing and introducing world class technologies at local price and robustness requirements. Other factors like environmental Conditions, road conditions, duty cycle, customer usage, cost-of-ownership, useful life etc. also plays a very important role in customization of parts. We have many examples already in India in both our Clean Air and Ride Performance business where we have introduced the new technologies were introduced to meet specific customer needs. Our teams have worked closely with local and global Engineering teams of the customers to bring these technologies to Indian Market.