Allison Transmission, Inc., the world’s leading supplier of commercial duty fully automatic transmissions and hybrid propulsion systems, has taken the next big step in the Indian market by deciding to set up a manufacturing facility for transmission components. The company broke ground recently on the new facility in Oragadam on the outskirts of Chennai, designed to meet the growing global demand for automatic transmissions. The new plant will be operational by 2010.
Allison believes that India, one of the world’s largest economies and a global supplier of commercial vehicles, is an important market for its automatic transmission products. Its investment in India comes at a time when global demand for its fully automatic transmissions keeps growing.
“We believe it is important to strengthen our local presence in India to support our growing in-country operations,” said Allison Transmission, Inc. Chairman and Chief Executive Officer Lawrence E. Dewey. “I am extremely proud of the milestone this groundbreaking represents, and thankful to the Tamil Nadu Government for its enthusiastic support.”
Allison Transmission, Inc. is a global provider of commercial duty automatic transmissions and hybrid propulsion systems. Allison products are specified by over 250 of the world’s leading vehicle manufacturers and are used in many market sectors, including bus, refuse, fire, construction, distribution, military and specialty applications.
Founded in 1915, the Allison business, headquartered in Indianapolis, Indiana, U.S.A., employs 3,300 people. It has regional headquarters with dedicated support staff in China, the Netherlands, Brazil, India and Japan. With a global presence in 80 countries, Allison has over 1,500 distributor and dealer locations.
Mr. Dave Parish, Vice President – Operations of Allison Transmission Inc., says, “94 years ago, Jim Allison constructed the first Allison machine shop in Indianapolis. Through the next 94 years we expanded with manufacturing and customisation centers in North America, Hungary, Netherlands, Brazil, China and Japan. And today we have taken an important step to contruct a multipupose facility in India. Initially, we will manufacture transmission components and later we will expand our operations to meet ever-changing market conditions, India is a very important market for us”.
Allison’s association with India dates back more than 40 years when it began serving the country’s mining and oil field industries. The early transmission came into India through imported off-highway vehicles. In order to provide after-market support, service parts availability and access to customer service, Allison established a distribution network in India. As BEML and HML (Hindustan Motors) started localising off highway vehicles, Allison entered into a technical licence agreement with Hindustan Motors-Power Products Division (HM-PPD), now called Avtec, to localise and manufacture off-highway series of transmissions in India under the brand Hindustan Transmissions. Avtec continues to manufacture the off-highway transmission products in India.
Mr. Ram Amarnath, Managing Director, Allison Transmission India Private Ltd., says, “Over the last 40 years we have seen our business grow in the Indian market. Today’s Chennai ground breaking allows us to prepare for the next 40 years. Our intent is to achieve the same level of success, if not exceed, in the medium and heavy-duty bus and truck applications with Allison Transmissions on-highway product portfolio”.
In 2007, Allison established permanent offices in India, operating under the name of Allison Transmission India Pvt. Ltd., to realize growth opportunities in the on-highway market. In recent years, Allison Transmission’s growth in India has been propelled by fitting automatics into low-floor CNG and diesel buses in Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Nagpur and other Indian cities.
There are now nearly 1,000 on-highway trucks and buses operating in India, which are fitted with Allison Transmissions. Major OEM customers include Tata Motors, Ashok Leyland, JCBL and Lexia Motors. In fact, Allison recently concluded a contract to supply Tata Motors with fully automatic transmissions for low-floor, state-of-the-art, CNG-propelled buses to serve the Delhi Transport Corporation (DTC).
Allison chose Chennai, particularly Oragadam on the outskirts of the city, for setting up its new facility. “We conducted an extensive and lengthy search before we settled on an area in which to build our India facility,” said Ram Amarnath, Managing Director of Allison Transmission India Pvt. Ltd. “And we found the right mix of location and a talented, world class employment pool in Chennai.”
In fact, Oragadam is becoming a booming automotive hub which has attracted more than Rs. 60,000 crores of investment from more than 100 Indian and global majors which have chosen to set up their manufacturing facility, says Mr. N. Govindan, Chairman & Managing Director of Sipcot.
Once construction of the more than 203,000 sq. ft. manufacturing plant is completed by early 2010, it will also serve as the Allison Transmission India Pvt. Ltd. regional headquarters with executive, marketing, and sales offices. In addition, the facilities are designed for warehousing and customization. The company has in place key local management staff in areas of operation, purchasing, human resources and sales personnel, and plans to expand the team further, and when the new facility is completed, more than 300 employees will be added to the Allison Transmission’s Indian operations.
As with operations everywhere, whether in North America, Latin America, Europe, or Asia, delivering on the Allison Brand Promise of an automatic experience with an unrivalled combination of quality, reliability, vocational value and customer service is of paramount importance.
“We have already realized tremendous growth opportunities for our products in the Indian market,” said Michael G. Headly, Vice President of International Marketing, Sales & Service of Allison Transmission, Inc.
“We see an industry that is developing, expanding and improving products internationally. Indian OEMs are important global players whose products are avidly sought after, and it is important for Allison to be aligned with these manufacturers as they expand their business operations. The setting up of the Indian facility is commitment from Allison to the Indian market”, he adds.
