As the automobile industry has always been a significant growth driver of the Indian economy, the role of component manufacturers has remained very critical for the development of world class products and technologies. In this regard, the Chennai-based Delphi-TVS Diesel Systems Ltd. has not only proved itself a major player but has turned out to be the only joint venture set up by the US giant Delphi with its Indian counterpart, Lucas-TVS, for development of diesel systems like rotary pumps, common rail systems, diesel filters, etc.
According to company sources, the one factor that drives the growth of the joint venture is the integrity of the two partners. TVS is known for its product reliability, trust and service, while Delphi has its world-renowned brand and expert technology. Initially, the joint venture started operations at Mannur near Chennai. However, with growing demand for its products, operations were expanded by setting up a plant each at Uttaranchal and Oragadam.
Interestingly, the joint venture manufactures all the required parts under one roof. For instance, the Chennai plant makes all components for rotary pumps, whereas the Oragadam plant produces the parts needed for common rail systems.
The Unit Pump Diesel Common Rail (UPCR) system developed by Delphi-TVS has been well accepted worldwide, thanks to its superior technology. All the products brought out are indeed popular among leading OEMs, including M&M and Ashok Leyland. Since India has the unique advantage of low cost of production of vehicles and components, Delphi has established its global technology centre at Mannur where around 300 engineers are closely involved in developing high technology products. This has helped the joint venture further expand its customer base.
Expansion plan
Since most of the Indian automobile manufacturers are busy expanding production and introducing new vehicle models, Delphi-TVS is investing Rs. 350 crores for setting up an additional facility at the Oragadam plant which specialises in common rail systems. The new facility, being set up mainly to meet the growing demand of OEMs like Tata Motors for its ACE series and Ashok Leyland for its DOST. Though the company has been supplying only rotary pumps for the Tata Ace, it has started supplies of common-rail systems too for some Super Ace variants. As of today, Delphi-TVS is a single source of rotary pumps for the million-plus Tata Ace vehicles sold – a clear testimony to its proven technology.
Advantage diesel
India mainly depends on diesel vehicles because of the lower cost involved, a fact which gives a clear advantage to Delphi-TVS. The general impression that diesel engines cause more pollution than petrol engines is baseless since, if the diesel is produced as per specifications, it could as well match the benefits offered by petrol. The Government is seriously working on tackling adulterated fuel sales by enforcing the Euro IV norms in all towns and cities rather than confining them to metros with a view to ensuring a cleaner environment. In fact, Indian OEMs are now fully prepared to meet the Euro V emission standard which is in vogue in other parts of the world. However, strict legal implementation is the need of the hour.
Aftermarket push
The company has now its greater focus on aftermarket product sales. By expanding the sales and service network to cover the entire rural areas, customers would certainly benefit by receiving quality products at the right price at the right time. Currently, the company has over 150 service centres across the country, with its products being sold through the group company, Lucas Indian Service, a leading distributor of automobile spares in the country.