Rico Auto bags CV busi­ness

Rico Auto has bagged or­ders from CV mak­ers.

Commercial Vehicle - - WHAT'S INSIDE - Story by: Gun­jan Bi­dani

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.

Mr. Ab­hishek Kul­shrestha, Vice Pres­i­dent – Cor­po­rate Ma­te­ri­als & Af­ter Mar­ket Busi­ness; Ku­lathunga, Sri­lanka Dilma Auto (Dis­trib­u­tor), Arvind Ka­pur, Chair­man, CEO & MD; Pard­hasaradhi Un­nam, Hy­der­abad Cy­berAuto (Dis­trib­u­tor).

Cylin­der Block.

Bed Plate (Left) and Oil Pan (Right).

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