Bollhoff Fastenings approach to Asia
Bollhoff Fastenings Private Ltd., is a global manufacturer and distributor of fasteners and assembly systems. The company develops and supplies a broad range of application and process-oriented fasteners, together with the corresponding assembly solutions spanning across the vehicle’s body structure, body exterior, interiors, lighting and powertrain. With a global network of five companies and 39 locations in over 24 countries, the company has in all 13 production facilities including in India, at Gurugram, Haryana. With a presence in the Indian market with its own subsidiary since 2007, the company has come to take a strategic approach to meet the future growth needs of its customer base in Asia. One such step that the company has taken is adding more muscle to its India production facility. The move to upgrade is a step in the direction of expanding India operations and to better cater to the future demands of its automotive customers. According to Shiv Kumar, Managing Director, Management, Bollhoff Fastenings Private Ltd, the expansion has been carried out by infusing a capex of Rs.10 crores (USD 100 million). “The growing need for light-weighting in the automotive sector required better penetration of technology in operations, coupled with a clearer understanding of customer needs, hence this expansion has been carried out to bring the company’s global expertise and capabilities to India,” explained Kumar. In 2018, the Bollhoff annual capital investment was in excess of EUR 65 million with significant investments in the company’s production and logistics capacities. Sales in Asia for the year 2018 grew at 9.2 per cent compared to an 8.2 per cent growth in 2017.
A newly thought-out production layout is also said to have improved the material flow, thus minimising waste. In India, among added capabilities at the company’s fastening and assembly plant at Gurugram, is an increased shop floor area. It is to incorporate more Computerised Numerical Control (CNC) machines. With a total floor space of more than 3,700 sq.m., the new building is claimed to be 2.5 times as large as the company’s previous headquarters. With the CNC machines sourced from Japan, Kumar said, the company has added four of these machines to the new unit. Besides modernising office space and increasing production capacities, the company, according to Kumar, is also employing more manpower. Besides investing in human resource, the company is also investing in a state-ofthe-art Research & Development (R&D) centre and application engineering, coupled with training of staff and educating the workforce. With the Bollhoff fastener claimed to be unlike a standard fastener, which is a one-size-fits-all solution, the company’s R&D unit in Germany
and India will look to ensure in sync operations going forward. While the technical expertise will come from Europe, Bollhoff will rely on its local engineers for customisation in line with the needs specific to the domestic market here in India.
Growing possibilities
Considering the fact that customers require a thorough explanation regarding the unique application areas offered by special fasteners manufactured by Bollhoff, the company, not only provides its fastening and riveting solutions but also supplies the machinery to assemble all the elements together. This, explained Kumar, enables customers to understand the value addition offered by the company beyond riveting applications and the process engineering that goes along with the development of a final product. At the new facility, Bollhoff will manufacture Helicoils and Amtec self-tapping fasteners, with the latter being used with moulded plastic units in the engine bay to provide enhanced performance and offer a light-weight construction. In the case of the former (Helicoils), claimed Kumar that it will particularly help the Original Equipment Manufacturers (OEMs) to reduce the dimensional and weight footprint of their products. This is made possible with the Helicoil used to offer strengthened bolting in softer materials like aluminium. A Helicoil is said to reduce the thickness in a material without lowering the required torque for tightening or compromising the structural rigidity. Saving of material such as aluminium not only saves weight but also reduces the cost for OEMs, making the Helicoil a value engineering product beyond being looked at as just a bolt. An estimated 40 million parts will be produced from this new facility for automotive and industrial applications.
Design prowess
Unlike a couple of decades ago, current market requirements have in effect translated to OEMs actively engaging with tier 1 and tier 2 suppliers, especially in their design and development stage. With all efforts in the direction to make a vehicle lighter, more fuel-efficient and compact, it entails the entire value chain of vehicle engineering being involved in the production process. This, explained Kumar, gives suppliers an opportunity to understand the nuances of an end-to-end manufacturing cycle. For instance, the need for higher customisation and product differentiation over the past few years has seen Bollhoff engage deeper in the product development process with its OEM partners. Global technology and product requirements are said to be finding their way faster to the domestic market. It has further led to design versatility
and lightweight processes gaining high prominence in the company’s scheme of operations. In contrast to the vehicle body structure predominantly being made up of steel, multiple material applications are being looked into with materials engineers known to be creating and studying materials at the atomic level. “Flexibility of design has compelled OEMs and component manufacturers to explore newer material combinations. Aluminium diecasting and high-strength steel are being frequently used in today’s vehicles,” averred Sven Ammer, CEO Asia & Managing Director, Bollhoff (Wuxi) Fastenings Co. Ltd. This change in material usage has resulted in the need for innovative fastenings and fixtures, which is the area Bollhoff is rigorously working upon.
Go-To-Market Strategy
With the rollout of Bharat Stage VI (BSVI) norms slated for April 01, 2020, Bollhoff according to Wilhelm Alexander Bollhoff, Managing Partner - Bolhoff Group has engaged in constant consultation with its customers. To improvise and offer solutions in tandem with the new engine emission compliance requirements. “Initially, product prices will go up and the entire disruption in production will entail substantial investments for manufacturers but the end result is expected to provide a boost to environmental well-being and vehicle efficiency,” he opined. From Bollhoff’s perspective, the new norms coming up next year will require higher tolerance levels for components and more light-weighting. Drawing attention to the engine area’s needs of parts that can sustain high temperatures, mentioned Kumar, Bollhoff supplies parts for the inlet manifold of an engine where the quality specifications and requirements are quite stringent.” On the company’s EV strategy, expressed Ammer that unless the charging infrastructure relies on solar or wind energy it would be difficult to predict the success of EVs across countries. Touching upon challenging times for India’s auto sector, Bollhoff argued that even markets like Europe and China were experiencing a challenging business environment and that it would be difficult to predict the turnaround time. “The company is still optimistic about a quick recovery and expects a growth of seven to eight per cent in India over the long term,” he signed-off.