Hirschvogel India targets Rs 200 Cr turnover by 2020
Hirschvogel Components India, a member of the Hirschvogel Automotive Group, Germany, manufactures transmission shafts and constant velocity joints (CVJ) for powertrains of passenger cars. The company targets Rs 200 crore turnover by 2020. The German company is a leading producer of forging and machining parts for gas and diesel injection, transmission, powertrain, chassis and engine.
Kartar Chavan, Director, Hirschvogel Components India, told Auto Components India that, Hirschvogel began its Indian operations in 2009 with a joint venture with Kalyani Thermal Systems Ltd., a sister company of,Bharat Forge Ltd. “By 2012, we bought the entire stake and became an independent entity. We have become operational from 2010. Recently we shifted our operations to the newly-built Pune facility and productionised the same from February 2016. In our forging sphere we have cold, warm and hot forging but for India we do only warm and cold forging. Our presence is only in the passenger car segment and we do serve as tier-1 supplier for Hyundai and Honda and tier-2 supplier for Maruti. Our component spectrum in India gets confined to CVJ and transmission shaft. We aim for a commendable business growth in 2-3 years which would reflect in our turnover.”
The company manufactures hollow shafts and net shafts and for India it applies cold forging techniques and produce netshafts. The net shafts are very less machined and has precise tolerance level.
The company states it faces huge challenges with respect to Indian operations in cost sphere. The norms are getting tightened and a lot of technologies will find a place in the component making. “Trying to fit everybody in the same bracket is a challenge in the cost competitive market. We are ready with lightweighting technologies and can optimise the design but we will not be able to win over the customers with low cost play. We have capability to serve but the market should respond with the needs and should scale up their affordability,” he said.
The company derives its R&D support from Germany. Most of its products are Euro-VI compliant. About the cost challenges and the steps being taken to overcome them, Chavan said, “We are trying to adapt lean manufacturing techniques in India and discount the processes which are not mandatory in India. We are trying to adapt cost effective technologies for the domestic market. Currently we have enough capacities to serve and we are not sketching new plans for capacity expansion. We are in talks with a few other OEMs in the passenger car segment and aligning our capacities for the same. But it is too early to name them.”
The company says the localisation is purely based on the client’s needs. The procurement of raw materials varies as per the needs of the company. The manufacturer sources steel from Korea for Hyundai and from Japan for Honda. It does not have aftermarket presence as of now in India. The company has 9 plants across globe and 5 plants are located within Europe. The 4 other plants are located in India, US, Mexico and China. As the company serves 3 OEMs in passenger car segments, the manufacturer comments that the market share is too big a terminology to use now.
“We have presence in the transmission shafts and expects a good momentum of growth and with respect to CVJs we produce 200,000. We expect the market will certainly support us with the new norms outlined,” Chavan concluded.