Rico Auto bags CV business
Rico Auto has bagged orders from CV makers.
Rico Auto has bagged orders from CV makers, elevating its participation in the CV industry.
Starting its journey in the mid-80s by setting up a project to manufacture rear hub wheels and front hub wheels as an ancillary unit to Hero Honda Motors Ltd., Rico Auto Industries has bagged an order from Daimler. It is an exports order according to a source aware of the development. On the condition of not revealing his name, he mentioned that Rico Auto will soon start exporting the engine brackets to Daimler locations in US and Germany. Marking a significant step ahead, the company also supplies engine brackets to Tata Motors and VE Commercial Vehicles. In the Cv space, Rico Auto also caters to clients like Caterpillar and Komatsu. Serving tier suppliers like Cummins, Tata Cummins, Allison Transmission, Magna, Perkins and Kohler Engines, Rico Auto is catering to a variety of requirements of the auto industry. Supplying engine brackets, cylinder blocks and bed plates to Tata Motors; crankshaft covers and engine brackets to VE Commercial Vehicles for the last five years, the company is increasing its reach in the CV space.
Supplying two-wheeler, passenger vehicle, and commercial vehicle OEMs as well as tier suppliers with parts like oil pumps assemblies, fuel system parts, lube oil filter heads, exhaust manifolds, turbine housings,
centre housings, back plates, crank case covers, cylinder head covers, oil pans, intake manifold covers, valve covers, side covers, balancer shaft assemblies, gear housings, main bearing caps, flywheels, timing cases, oil filter adapters, engine brackets, cylinder blocks, cylinder heads, auto transmission brackets, differential case housings, gear shift forks, wheel hub assemblies, brake discs, brake drums, steering knuckles, among various others, the company is also developing electric motor parts to cater to the upcoming e-mobility market. Clocking a turnover of Rs.1226 crores in FY2017-18, Rico Auto is at an advanced stage of talks with various auto majors to serve their electric vehicle program needs. Confident of achieving a 40 per cent growth to clock a turnover of Rs.2000 crores by 2020, the company has plans in place to start rolling out parts for electric vehicles by 2020.
Having orders to the tune of Rs.1200 crores in-hand, Rico Auto has forayed into the fourwheeler aftermarket. Planning to install new machines at its Chennai and Bawal plants, the company, with a footprint that includes 14 manufacturing facilities in India, is seeking good growth from aftermarket participation. Having warehouses for domestic and overseas supplies, the company, having invested in a strong R&D setup, is confident of achieving good growth in the passenger vehicle and CV segments. Expressed Arvind Kapur, Chairman, CEO & MD, Rico Auto Industries, that they are keen to develop a close and sustainable relationship with clients. Leveraging the knowledge it has gained from working in the automotive space for the last 35 years, Rico Auto has entered the aftermarket with four-wheeler parts like bake drums, brake pads, brake shoes and disc brakes. Already having a considerable presence in the two-wheeler aftermarket, the company, in addition to a strong network of 40 channel partners across India, is carving out a strong presence in the neighbouring markets of Nepal and Sri Lanka.
Chalking out a definitive exports strategy, the company, according to Abhishek Kulshrestha,
Vice President – Corporate Materials & Aftermarket Business, Rico Auto Industries, will soon enter new uncharted territories with a special focus on SAARC countries. Offering no less than 400 products in the aftermarket, two-wheeler and four-wheeler aftermarket combined, the company is expecting a considerable uptick because of the upcoming festive season. Keenly following the
progress of two-wheeler taxis in various Indian cities, and how they will serve to forward its two-wheeler interests in the aftermarket, Rico Auto, said Kulshrestha, has succeeded in achieving a target of Rs.10 crores in nine months in the two-wheeler segment. Anticipating a strong growth in the two- and fourwheeler aftermarket, and to the extent of contributing a good deal to attain the target of Rs.100 crores by 2020, the company has not yet taken a
decision if it will venture into the CV aftermarket next. Mentioned Kapur, that beyond automotive, they are driving into non-automotive component business segments. “These include technical and engineering equipment required for defense, aerospace and homeland security,” he revealed.