Local assembly & new product lines planned
When German CV giants like Daimler and MAN propagate the technical finesse of their products in India, some of its leading partners are bound to get a rub-off effect. One such firm is BPW Bergische Achsen KG, a globally leading manufacturer of intelligent running gear systems for trailers and semi-trailers. Quite upbeat about its German engineering, the company is also a renowned component manufacturer for the commercial vehicle industry.
Trailer axles and running gear suspensions are the main programme of the owner-managed family business. In addition, special axles and running gear for agricultural vehicles and machines, as well as car-drawn and light commercial trailers, caravans, industrial and plant machinery round off the total programme of the firm based in Wiehl, near Cologne.
MOTORINDIA got the privilege of being the first publication to interact with Mr. Philipp Bäcker, General Manager, BPW Trailer Systems India Private Ltd. As an interface between India and Germany, Mr. Bäcker has to ensure that the Indian operations are following the German quality standards and expectations. The German corporate honcho has been in India for more than two-and-a-half years, and prior to that, worked at the BPW headquarters in Germany. He is responsible for coordinating supplier development, catering to the European manufacturing sites as well as sourcing activities for the Indian market. Moreover, he is establishing the operations to enter the market with local content and local assembly infrastructure in India. The supplier development activities in the past years are the solid base to succeed with the localization of the BPW assembly operations.
Being an industry expert, Mr. Bäcker began the discussion by saying: “We are very ecstatic about the Indian (CV) market. So far our activities here were confined to sourcing operations for our plants in Europe. So we were basically into procurement (of components) for our global operations. We were also importing high-end products like modular trailer axles, ODC and air suspension for a decade. But during the end of last year, we deliberated on enhancing our volumes and extending our product lines. We have also redrawn our business plans by having a local assembly. Even though the Indian trailer market is very big in terms of size, it has not been utilized efficiently. So we are also waiting for the market to expand, so that we can capitalize on our potentialities. We want to be the mobility partner for the end customers like fleet owners and operators. We have already kicked off road trials of our existing products and have tied up for these road trials with a local player like Seamless Autotech in Pune and Ideal Movers in Mumbai. We are building fruitful relationships with these companies to create win-win partnerships, in line with our company philosophy which relies on strong partners.”
It has to be mentioned here that BPW Trailer Systems India is the 100 per cent subsidiary of BPW Bergische Achsen KG. The company looks back on a tradition of more than 115 years and is still owner-managed with a consolidated group turnover of about 1 billion EUR and more than 5,000 employees.
As an international mobility and systems partner, the BPW Group offers solutions for the transport industry from a single source. With its innovative running gear technology ranging from axle and suspension to user-friendly telematics applications, the company creates outstanding transparency in loading and transport processes and facilitates efficient fleet management. The company is Europe’s leading manufacturer of CV trailer axles and offers axles with capacities upto 20 tonnes.
Talking about the upcoming facility, Mr. Bäcker noted: “Due to a host of factors like price competitiveness, product adaptability, and availability, we have firmed up on our localisation plans. In the initial phase, we will be operating from a facility in Pune (Maharashtra). The plant will be up and running August-September and will be initially assembling its existing product lines like trailer axles and suspensions. Before setting up a manufacturing footprint in India, we wanted to strengthen our supplier base here. We wanted the Indian suppliers get used to our high-precision quality and contribute to our worldwide manufacturing hubs. They are actually producing according to German quality standards. The commodities sourced are castings like brake drums and hubs, forgings like axle seats, multi-leaf springs for suspension parts.”
Asked about the peculiarities of the Indian market, Mr. Philipp further said: “The quality approach of German companies is world class. And that is why we keep on improving when we work with Indian suppliers. It is though very difficult as they sometime lack stable processes but it is improving. We are jointly working with them to improve their quality levels. As a German company, we are not only coming here as a seller but are also as learner in this market. We are learning various alternate materials and different options for our products. We are also deriving a lot of learnings which can be incorporated in our global practices. We are learning various ways to improve our products globally. That includes frugal engineering, out-of-the-box thinking, etc. It is a two-way street for us.”
When quizzed out BPW India’s product extension, the Deutschmann said: “BPW has expertise in mechanical suspension systems for over seven decades. We have redeveloped our mechanical suspension systems to enhance the performance, making the alignment easier, reducing the operation cost and making it more service-friendly. We will launch this product line in India to make a difference in the market. We intend to be a systems partner by bringing in braking systems, mudguards, lights, superstructure et al in the long term. We will also be considering a suite of telematic solutions like Tyre Pressure Monitoring (TPM), temperature control for reefer trailers, amongst others. These solutions help in reducing the wear and tear of the tyre and reduce fuel economy which ultimately protects the environment. But this comes through high technology in telematic solutions and efficient fleet management which is one of the biggest megatrends in the CV industry.”
Queried whether BPW India is keen to ally with global automakers in India, he affirmed by stating: “Yes, we look forward to ally with them for their hind-end products. We are in touch with various OEMs and together we can use our global experience to take the Indian CV market to the next level. Having said that, the end customer also has to discern the benefit in having our products as he is price-sensitive and service-demanding. When you have a strong customer, it is essential to provide world-class service. This will be a long-term, sustainable and economically-viable proposition in India. We are also eyeing business opportunities with local players and are also looking to offer our telematic solutions to strong, sophisticated logistic providers in the country. Moreover, we are keen to cater to the cold chain logistics sector which is another huge potential for the Indian economy and population. The cold chain sector has to improve to ensure the growth and supply of food for the country.”
Underscoring BPW’s CSR plans in India, he said: “We want to reduce food wastage, road accidents, and damages of vehicles. This can be done through hi-quality products done through BPW. All the solutions mentioned above can be provided under one roof. With the maturity levels increasing, it opens up a fountain of opportunities for us. Our products are maintenance-friendly and service friendly,” adding, “Our pricing is the biggest challenge. We have never been a price leader in any country and have been sailing smoothly for more than 100 years. And we are confident that we will do well in India too. Like in other markets, we not only sell products but go a step further by providing consultations, technical know-how, etc. Besides this, the whole legal framework is not in order. The country needs to create a barrier-free transportation. There should be a uniform levy of taxation (like GST). That will encourage long haul transportation. The infrastructure of warehouses also needs to be streamlined so that they adhere to quality standards. The average speed of the CVs needs to go up.”
However, Mr. Philipp Bäcker sounded optimistic while telling us the bigger picture and concluded the conversation by effusing: “The size of the Indian country is equivalent to Europe and is very challenging. But over here, the infrastructure is not as good as that of Europe. So for the next years, we will work on the infrastructure, we will work on enhancing our service network and spare parts availability to underline our commitment to the Indian market. We will be developing products for India which will be engineered, developed and sold in India. We will also be tapping on the engineering expertise from India. The advantage is that the country is a huge market and home to a large pool of qualified engineers. They are a highly motivated and skilled people with a different way of thinking. The R&D unit is something we are actively working on. With the growth of the company, we will be coming up with an in-house design and development facility. So, there will definitely be a moment when an Indian engineer/designer developing solutions for the global market. It is literally a rocky road to success in India but with stamina and world-class products, the advantages of quality and reduction of TCO will pay off in the long term. I am 100 per cent confident that we, as team BPW, will be successful in India.”