S-CCI In­dia to take DEF route for growth

Auto components India - - CONTENTS - Story by: Anirudh Ra­heja

S-CCI In­dia Pri­vate Lim­ited, a spe­cial­ist in the man­u­fac­ture of engine coolants, is get­ting into the man­u­fac­ture of Diesel Ex­haust Fluid (DEF) to in­crease its reach in the In­dian CV mar­ket. Keen to in­crease its ex­po­sure in the CV sec­tor by man­u­fac­tur­ing DEF at its Chopanki plant in Bhi­wadi, the com­pany is eye­ing a pie of the mar­ket that is es­ti­mated to be 4576000 kilo litre and grow­ing.

As part of an ini­tial in­vest­ment in DEF, S-CCI will in­vest Rs 5 crore in a phased man­ner. With the num­ber of SCR-equipped CVs ex­pected to grow rapidly as BS-VI emis­sion stan­dards are to be im­ple­mented in 2020, S-CCI In­dia is look­ing at a rapid growth in the seg­ment. Keen to lever­age its ex­ist­ing net­work as well as those that come in as part of the ex­pan­sion, it wants to achieve a higher mar­ket reach for DEF. Estab­lished in 1985 in tech­ni­cal col­lab­o­ra­tion with CCI Cor­po­ra­tion, Ja­pan, to man­u­fac­ture engine coolants, S-CCI In­dia is closely fol­low­ing the con­sump­tion pat­tern of DEF in In­dia. Typ­i­cally con­sumed at the rate of 3-5% of the fuel quan­tity, one fill of AdBlue in a sep­a­rate tank of 40 litre ca­pac­ity is said to be suf­fi­cient for one fill of fuel tank, which is usu­ally 800 litre in a CV. Cater­ing to CV man­u­fac­tur­ers like Tata Mo­tors, Force Mo­tors, SML Isuzu, and trac­tor and off-high­way equip­ment man­u­fac­tur­ers like TAFE, Es­corts, ITL, Eicher and Ko­matsu, the com­pany, ac­cord­ing to S. K. Singh, Di­rec­tor, S-CCI In­dia, is in­trigued by the travel of CVs across the length and breadth of the vast coun­try.

Con­fi­dent of the growth po­ten­tial of DEF, S-CCI In­dia is also look­ing at in­creas­ing its reach of coolants for CVs. While both the ini­tia­tives are ex­pected to fur­ther strengthen the com­pany’s bot­tom­line, S-CCI In­dia is closely ob­serv­ing the changes in engine tech­nol­ogy dic­tated by the tight­en­ing emis­sion reg­u­la­tions. “Un­like ear­lier, OEMs have be­gun ask­ing for coolants of spe­cific

na­ture. This is linked with the change in engine met­al­lurgy and the need for CVs to spend more time on the road,” Singh said. De­mand for coolants that best suit the job is ris­ing. Re­duc­ing the ten­dency to boil over with the use of Mono Ethy­lene Gly­col (MEG), and re­duc­ing cor­ro­sion, coolants in CVs are sub­jected to more stress. MEG can­not be used in its con­cen­trated form since CVs have higher op­er­at­ing tem­per­a­tures.

MEG is used with 30-50% wa­ter since it has a bet­ter heat trans­fer prop­erty. Chang­ing ex­pec­ta­tions re­gard­ing coolants have reached a level where they are ex­pected to last the life­cy­cle of the ve­hi­cle. Ear­lier, a coolant had to be changed at an in­ter­val of 10,000 km. S-CCI has won the ap­proval of Daim­ler for a coolant (L415) de­vel­oped for MAN Trucks In­dia that has a life span of 5 lakh km, Singh said. boost­ers, stress is laid on achiev­ing a bal­ance where the coolant is nei­ther acidic nor al­ka­line. It is es­sen­tial to achieve validation, which could take up to 2 years. “Cer­tain lab tests can mea­sure and pre­vent chem­i­cal de­ple­tion. This helps to gauge the life of the coolant,” he said. Singh drew at­ten­tion to re­stric­tions im­posed by au­tomak­ers on the use of chem­i­cals. This is claimed to be in the in­ter­est of com­ply­ing with reg­u­la­tions. Be­cause of the blan­ket ban on car­cino­genic chem­i­cals, mer­cury and cad­mium, the au­tomak­ers give the coolant man­u­fac­tur­ers free­dom to de­velop bet­ter prod­ucts. “Com­pe­ti­tion is fierce, and it is im­por­tant to be aware of what the com­peti­tors are up to,” Singh said.

Work­ing on to build a plant in Gu­jarat, S-CCI In­dia is mov­ing ahead as per the plan to in­vest Rs.15-20 crore in a phased man­ner. Once op­er­a­tional, the Gu­jarat fa­cil­ity will com­ple­ment the com­pany’s 2 ex­ist­ing fa­cil­i­ties at Chopanki and Si­tar­ganj. The Chopanki fa­cil­ity has a ca­pac­ity to man­u­fac­ture 15-kilo litre of coolants, and 9000 kilo litre of brake fluid. The plant em­ploys 125 peo­ple.

The Si­tar­ganj plant has a ca­pac­ity to man­u­fac­ture 3000 kilo litre of coolant, and 2000 kilo litre of brake fluid. The Chopanki plant is op­er­at­ing at 65% ca­pac­ity ac­cord­ing to Singh. Ca­pac­ity, he said, could be in­creased as per de­mand. About 60% of the CV busi­ness is mov­ing on a small fleet size of even 2 trucks. “The way the seg­ment is stag­nat­ing is not a healthy sign for a grow­ing econ­omy,” he said.

Spend­ing up to 2% of its rev­enue on R&D ac­tiv­i­ties, S-CCI In­dia is de­pen­dent on CCI for broader tech­no­log­i­cal up­dates. The test lab within the Chopanki plant can con­duct tests for Ph value, con­duc­tiv­ity, ten­dency to foam, and more. The lab is equipped with test equip­ment like con­duc­tiv­ity me­ter, foam­ing ten­dency tester, re­serve al­ka­lin­ity tester, gas chro­matog­ra­phy, melt­ing point an­a­lyzer, brake fluid rub­ber swelling tester and cor­ro­sion tester for brake flu­ids.

New launch

S-CCI In­dia re­cently launched a long life anti-freeze coolant called Ex­treme. It can sus­tain tem­per­a­tures of up to -36 de­gree Cel­sius. “A litre of coolant when mixed with 3 litre of wa­ter leads to a mix­ture that per­forms up to -7 de­gree Cel­sius. Ad­di­tion of wa­ter over a pe­riod of time re­duces the change in­ter­val from 3 years to 2 years as the anti-cor­ro­sive prop­er­ties of the coolant de­crease,” Singh said. Stress­ing upon com­pa­nies chang­ing their pref­er­ences quickly, he said, “Over co­branded prod­ucts, OEMs are opt­ing for coolants that flaunt their brand names. These are built to their spec­i­fi­ca­tions.” With a rise in aware­ness for high qual­ity prod­ucts, Singh men­tioned that OEMs are de­mand­ing high life coolants. When it comes to MNCs, S-CCI In­dia is lever­ag­ing CCI’s re­la­tions. The com­pany is thus look­ing at clinch­ing a deal with Yan­mar Trac­tors, which is en­ter­ing In­dia, by lever­ag­ing CCI’s re­la­tion with the trac­tor man­u­fac­turer. The af­ter­mar­ket ac­counts for 15% of the com­pany’s

vol­umes. The chal­lenge, ac­cord­ing to Singh, is the coun­ter­feit prod­ucts. To over­come the chal­lenge, S-CCI In­dia has placed sales teams that reg­u­larly com­mu­ni­cate with the me­chan­ics. The com­pany has 150 dis­trib­u­tors that net­work with 20,000 re­tail­ers across the coun­try. Work is on to in­crease the

pres­ence in the North East mar­kets ac­cord­ing to Singh. Look­ing up to GST as one of the big­gest re­forms, Singh ex­pressed that there is a need for an ef­fi­cient re­dress­ing mech­a­nism. “If it is ef­fi­cient and fast, GST will suc­ceed. If there is ha­rass­ment, it will cre­ate un­hap­pi­ness,” Singh said.

A lead­ing sup­plier of coolants and brake flu­ids, S-CCI’s Chopanki fa­cil­ity will house DEF man­u­fac­tur­ing setup as well.

S. K. Singh, Di­rec­tor, S-CCI In­dia, is keen to in­crease his com­pany’s par­tic­i­pa­tion in the CV sec­tor.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.