Emcon Technologies India, a 74:26 joint venture between Emcon Technologies of the US and Anand Automotive Systems, inaugurated its new state-of-the-art manufacturing plant in Chennai on April 7. Emcon Technologies and Anand Automotive have already invested $4 million in the project since inception. A further investment of $10 million is on cards.
This plant of Emcon Technologies India, spread over four acres, has equipment imported from the UK to produce exhaust systems, including catalytic converters, side impact beams and reinforcement panel assembly for the automotive industry. It employs 60 persons.
The company is exploring the possibility of setting up an additional facility in western India. With this new plant and an upcoming green field project at Singur in West Bengal, the company expects to achieve a turnover of $50 million by 2011. It is investing Rs. 70 million in the new plant in Singur which will cater to the requirements of Tata Nano. The complete exhaust systems for Nano has been developed by Emcon.
Visiting India on this occasion, Mr. Lee Gardner, CEO, Emcon Technologies of the US, said: “Emcon Technologies India is the only emission solution provider having a design facility. Our vision is to make it the leader in the Indian market. Emcon Technologies India is making key contribution to achieving the global strategic goal, which is to generate five per cent of the company sales from Asia.”
Emcon is also working with all the CV manufacturers for the new engines and new models which these companies plan to launch in 2010 when the new emission norms for commercial vehicles come into force. The country will adopt Euro 4 by 2010 for commercial vehicles which will require substantial changes in the powertrain and exhaust systems.
Mr. CS Patel, CEO, Anand Automotive Systems, said: “We design, manufacture and deliver locally, yet guarantee that our products comply with the same international standards that are synonymous with the Emcon Technologies brand. Our strategy is to stay physically close to our customers. Chennai is an important location for Emcon Technologies India but we are expanding to East India and exploring the possibility of a plant in West India. The inauguration of this new plant provides us business opportunities offered by one of the world’s fastest growing automotive markets”.
Emcon Technologies India reported sales of $11 million in 2007. This is less than one per cent of the global turnover of $4 billion. Emcon is already an OEM to Ford and Toyota. Both these companies working on their small car model for the Indian market. The Tata Nano project assumes a lot of importance plus all the new projects with CV manufacturers. All these present a huge opportunity for growth in India, according to Mr. Gardner.
