Magneti Marelli looks to treble revenues in India
New Delhi: Italian auto components maker Magneti Marelli is looking to treble its revenues in India to over Rs 3,000 crore in the next four years and plans to introduce new technologies in the market.
The company also said it may take a final decision to form a new joint venture for manufacturing of two-wheeler fuel injection systems in the country in 2-3 months.
Besides, the company, which plans to invest about Rs 100 crore on increasing production capacities, is also looking to increase export of components manufactured in India for automakers in Europe and other global markets.
"India is a key fast growing market for us. In 2012, we will have a revenue of around Rs 1,100 crore. Our target is to increase it three-fold to over Rs 3,000 crore," Magneti Marelli SpA President and chief Executive Officer Eugenio Razelli said here.
In order to shore up revenues from India, the company plans to introduce new technologies in both four-wheeler and two-wheeler segments.
"Two-wheeler emission norms are going to change in India. Although the regulation is not clear at the moment, in the next two-three months we may decide on a joint venture for manufacturing fuel injection systems for two-wheelers keeping in view the development," he said without disclosing details.
For the four-wheeler segment, he said that by next year the company expects to introduce the AMT (Automated Manual transmissions) technology in the Indian market but did not share the name of automaker. AMT combines features of manual and automatic transmissions.
When asked about investments for India, he said the company has earmarked about Rs 100 crore for future expansion, which might include new plant for manufacturing LED lights.
On the export front, Razelli said Magneti Marelli would be using its plants in India to supply parts to other global markets.
"We have just shipped the first shock absorbers produced at our Pune plant for OEs in Europe. Already, we have been exporting some exhaust parts. In Sunday's time of integrated network, we cannot set up a plant in India only for the Indian market. The plants here will also be used to supply to our other global operations," he said.
On the other hand, Razelli said that with global auto
majors coming to India and making the country their export hub, Magneti Marelli would also enhance presence in India to serve their international clients.
"We have our customers who need us to be around them. For instance, if Volkswagen decides to launch the small car UP! in India then we will have to be here," he said.
Razelli also said the company's research and development team in India would also be strengthened to increase its role in global projects.
"We have been building a team of electronic engineers in India. Currently about 100 engineers are working in global projects and this number will grow very fast," he said.