The GS Group has stood the test of time despite very challenging circumstances in Punjab, particularly in the 1980s when economic activity in the State was utmost at a standstill. What really impresses me is the commitment of the group not just towards the business but also towards the society it belongs. Despite bad times, the group and the founders have never thought of moving out of Punjab, even to nearby States like Haryana or Himachal where attractive incentives were offered for setting up business.
Currently the third generation of the GS family, Mr. Jasbir Singh, Chairman, and Mr. Surinder Singh, Managing Director, handle the operations of the company. Today the GS Group boasts of a turnover of over Rs. 140 crores, with the flagship company GS Auto International having registered a turnover of Rs. 97 crores for 2007-08. The company has grown by 12 per cent overall. This is despite the commercial vehicle segment’s negative growth last fiscal.
GS Auto is an OE supplier to Tata Motors, Ashok leyland, Eicher Motors and Mahindra & Mahindra. The company manufactures components mainly for commercial and utility vehicles.
In 2007-08, out of the total business 53 per cent of the business came from the aftermarket, 37 per cent from OEMs and 10 per cent from export. In fact, GS Auto witnessed tremendous growth in the aftermarket segment last year. What hampers growth is capacity constraint at its existing plant in Ludhiana. The company is investing Rs. 25 crores in adding fresh capacity at the plant and is setting up another plant, the first outside Punjab, in Jamshedpur closer to its main customer, Tata Motors.
The new plant in Jamshedpur will manufacture casting components for which the company is setting up a state-of-the-art foundry unit. The plant is expected to start production by the end of the year. To further increase capacity at its existing plant in Ludhiana a new foundry unit is being set up. This will add another 500 tonnes of casting per month.
New tie-ups
GS Auto International recently inked two major tie-ups with internationally acclaimed companies. It signed an agreement with V.Orlandi Spa. of Italy which specialises in the manufacturing of towing systems in Europe and another agreement with the leading German manufacturer of automotive connectors and spiral cables in Europe, Erich Jaeger GmbH. With this tie-up, GS Auto would be introducing Erich Jaeger’s components in India.
Mr. Anadi Sharma, President – Marketing, GS Auto, said the company is in talks with several OEMs in India for introducing its partner’s products for Indian vehicles.
V.Orlandi
V.Orlandi is a 150-year-old company with leadership in the Italian trailer-coupling market and the sole domestic manufacturer of fifth wheels. It has now built a worldwide reputation among leading manufacturers of industrial vehicles.
Since its acquisition by the CAM-BS Group in 1989, V.Orlandi started designing and manufacturing towing systems for the international industrial-vehicle market. It has penetrated foreign markets and safely serves the world’s highways day after day through an efficient network of importers. Orlandi is an OE supplier to most of the truck manufacturers for its fifth wheel couplings.
“We are looking at towing systems for trailers and fifth wheel couplings for semi-trailer for the Indian market. Initially we will be importing the products, and selling them in India. Later we will look at setting up a manufacturing facility in India. We are targeting all the major OEMs in India for the fifth wheel couplers”, added Mr. Anadi Sharma.
Erich Jaeger
GS Auto has also tied up with Erich Jaeger, a German company offering a broad range of trailer connectors. Founded in 1927 the German firm employs about 600 people worldwide. The company works in close co-operation with its customers in the automobile industry on innovative solutions in the areas of wiring, plug-in connections, electrics/electronics and trailer couplings up to series production. In addition to its headquarters in Friedberg, Jaeger maintains a branch office each in the Czech Republic and China as well as sales offices in France, Italy, Sweden and Poland. The annual turnover amounts to 32 million euros.
In the equipment of commercial vehicles, complex technology assumes greater significance. Thus, increasing demands are made on every component. This also applies for electrical cables and connectors. For example, the development of ABS and EBS systems make a significant contribution to road safety. However, it has to be assured that all signals necessary for the functionality of these systems can be transferred from towing vehicle to trailer. For this purpose, Erich Jaeger offers specific connectors, which are designed to fulfill the task. The trailer connectors are available for 12V and 24V applications and with screw and crimp contact pins.
As the trailer market matures in India, there will be greater demand for quality and better technology solutions.
Trailer axle
A very important development for GS Auto in recent years is the addition of trailer axles to its existing range of products. Considering the growth in the trailer segment and the huge opportunity it offers, the company has indigenously designed and developed a true heavy duty axle taking into account the exact Indian road and load requirements.
Mr. Sharma observed: “The axle project was conceived three years back with the intention to provide complete suspension solution for the transportation system which is changing with long haulage heavy duty transportation. We identified an opportunity in this segment. We developed the products couple of years back and put it to extensive test for the last couple of years for more than 250,000 kms. In India we have very heavy overloading, hence we have taken this into consideration and designed a truly heavy duty axle. We have started commercial production 6 months back and the product has done very well. We have set up a separate facility within our existing facility in Ludhiana and are focussed mainly on the trailer axle at this point”.
The company has used some of the best aggregates, including brake systems from Brakes India, and the brake chamber has been developed by Bosch Chassis systems (KBX). The main tube used in the axle is seamless and he
at-treated.
GS Auto has set specific business benchmarks for the three sectors it operates in. The target is generation of 45 per cent of its total business from the OE sector, another 45 per cent from the aftermarket and the remaining 10 per cent from export.
In the export market the company has just started supplying to ArvinMeritor for the European market. These products are being fitted on all the major trucks like MAN, Scania, Volvo and Mercedes. The target is to achieve a level of 20 per cent from exports by 2010.
The GS brand has always had its very strong recognition and support in the aftermarket purely because of the quality and reliability of products supplied. In fact, compared to earlier years, sales from the aftermarket were much higher. The company has established a vast network of more than 150 distributors and 10,000 retailers across India. With new products getting added the company is expecting the aftermarket to contribute significantly to the future growth.
GS Auto is working very closely with all the major commercial vehicle manufacturers in all the future projects, including the world truck project of Tata Motors. But beyond business, what really counts is the group’s commitment towards the society.
