Indian market a major focus
By N. Balasubramanian
With a focus on optimum seating systems for public passenger transport and commercial vehicles, the Kiel group remains one amongst the top five suppliers of bus and train seats in Europe.
Having been in the industry for over six decades now, the German company uses its extensive know-how it has built to design innovative seating systems for almost every area of use.
Kiel, one of Europe’s leading seat manufacturers for passenger seating, has recently partnered with Recaro Automotive Seating, a leading seat-maker for driver’s seats in Germany, to strengthen capabilities.
Through this joint venture, Kiel plans to expand its horizon into a variety of products. Over the years, innovation and cost-effectiveness and sharpened focus towards weight reduction have remained key factors for the overall success of the group.
At the IAA, Kiel exhibited new two seats in cooperation with Recaro. The new premium-quality aftermarket product Recaro C 7000 allows Kiel to offer a particularly attractive bus seat for retro fitment in order to enable manufacturers and bus companies significantly improve the driver’s workplace. The other new product, the Kiel ‘Auriga’ seat which has been jointly developed by the two companies would be supplied to bus manufacturers along with passenger seats as a complete solution.
Scouting for Indian partner
In India, with a growing need for buses that are lighter and economical, coupled with efficient fuel consumption and better comfort, Kiel is all set to utilize the ample opportunities to supply its highly developed products.
In response to a question on Kiel’s much anticipated entry into the Indian arena, Mr. Josef Vega, Member of the Management Board, Franz Kiel GmbH, replies: “In a time schedule of about 24 months, we would have a robust plan for the Indian market.
We prefer to have a strong local partner who knows the market and the customers well and could help us lay a firm foundation for a strong business in India.”
Entering the city bus segment would be an easier route for the company although the coach segment could prove to be a more profitable one. The company plans to focus equally on both the segments, owing to the growing demand in the Indian market.
It is also looking to leverage on the fact that many of its global customers have already set foot in India as the presence of multinational OEMs like Volvo, MAN and Mercedes presents good opportunities for tie-ups. Also, the company is scouting for partners among the home-grown players including Tata Motors and Ashok Leyland.
Focus on expansion
Globally, one of the biggest customers for Kiel is MAN as it caters to more than 20 per cent of the seating requirements of the CV manufacturer in Europe. The company also has a strong relationship with Volvo, Neoplan and Irisbus, and remains their preferred supplier in many markets. Kiel also supplies seats to Mercedes Benz in some global markets.
Owing to the growth stagnation and recession in the European market, Kiel is eyeing fresh markets and newer customers to weather the storm. Russia is one such market where it has entered into a joint venture for the supply of bus and train seats. It has also established a company at Elkhart in North America for the production of seats for the local bus and train markets. In South America, it has recently entered into a small cooperation in Brazil and expects sales to increase in the coming months. Furthermore, Kiel is looking to make inroads into the South African market where it sees huge potential, not only for the bus segment, but also for trains.
With about 800 people in the group, Kiel made a turnover of around 85 million Euros in 2011, including its share from the train segment. Last fiscal, it produced around half a million seats for trains and buses, of which more than 380,000 seats catered to the bus segment. With continuous innovation, state-of-the-art design and sophisticated technology, Kiel is aggressively working towards reaching a turnover target of one hundred million Euros in the coming fiscal.