“The USP of the Switzerland based company is that it has got a lot
of Intellectual Properties. There is a technology called face gear. We are the
global patent holder for this particular gear profiling or gear designing.
Hitherto they were only producing customised gear box, using only the
technology. The proliferation of this technology is a little slow because the
way we were manufacturing, cost competitiveness was little difficult, given
their cost structure. So what we decided as part of our strategy is that we are
having a big plan to do the manufacturing in India to offer a cost effective
solution to the design of Switzerland so that the combined revenue between
Avtec and Assag would go up multi-fold. That is one strategy,” says Kadapa.
Kadapa notes that the second strategy is that “they are very
competent in creating gear boxes for varieties of applications. That is another
area we are working very closely. Third
is that supporting Avtec here, a couple of design programmes are given to them
so that they design and give it to us and Avtec will do the piloting,
validation and testing for the customers. All this will help us to harness
their intelligence competency in the design field. All these three put together
will support the Avtec growth plan of Rs 3000 crore before 2019-20. We want to
grow to a Rs 3000 crore company”.
Kadapa stresses that Assag has a larger role to play in product
development. For its various clients Assag will give design solutions and Avtec
will do the manufacturing. “As for the customers of Assag, the latter will do
the design and we shall manufacture for them. In other words, there will be a
seamless integration of the parent company and the acquired company,” he adds.
The Hosur plant of Avtec manufactures
both automatic and power-shift hauling transmission for domestic and global
off-highway enterprises. It follows a cellular manufacturing approach, which
supports a broad product mix and a faster response. Another plant, located in
the Madras Export Processing Zone (MEPZ), Chennai is a completely export
oriented unit caters to the global demands.
Manufacturing
capabilities of Avtec
Avtec’s manufacturing units in
Pithampur, Hosur and Chennai are equipped with some of the best of
international machines like Liebherr, Gleasen, Hyundai, Mori Sekie, Reishauer
and Escofier. Globally it had acquired Assag of Switzerland. According to the
company, ‘Cylkro’ Gear Production B.V (CGP), in Hengelo, the Netherlands, is a
100pc subsidiary of Assag equipped with sophisticated manufacturing facility
for face gears. With modern machinery and comprehensive measurement system, CGP
can provide high quality face gears with shorter delivery time.
Avtec has also formed a joint
venture with Russian local engine manufacturer ZVD under the name AZ
Powertrain. The company is setting up a plant in the Togliatti region for the
manufacture of engine and transmission for a Sports utility vehicle in Russia.
Production is expected to begin by the end of 2015.