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KLT Automotive and Tubular Products Ltd. (KLT), the Mumbai-based auto component manufacturer, has planned to invest Rs. 250 crores in two new plants, in and around Tamil Nadu, to manufacture chassis frames for commercial vehicles, pick-ups and other utility vehicles.
KLT Automotive of the Thakkar Group is engaged in the manufacture of world-class chassis frame assemblies, precision tubes, hydroforming components and several other products for the automotive industry. Established in 1997, the company initially made roll form structures for load bodies and subsequently embarked upon a massive growth drive which led to opening up of 11 facilities in India and one in South Africa. During the period, it also diversified its business into precision tubes, chassis frames and hydroforming components.
Recently the company set up a 
greenfield project, a single strategic source for the HDT and MDT variants, for Daimler India Commercial Vehicle (DICV), on the latter’s Oragadam plant premises with an investment of Rs. 170 crores. It is now planning to expand the facility with further investments.
Mr. Bhavin K. Thakkar, Chairman and Managing Director, KLT Automotive, said: “Our company is focused on producing world-class quality products at Indian pricing. This focused strategy has helped us bag business from internationally-acclaimed names like Daimler, Ford and GM.”
The company will be investing nearly Rs. 70 crores to further expand its chassis frame plant located within the DICV manufacturing complex which will increase the capacity to 75,000 frames per year. It also plans to invest Rs. 150-200 crores over the next two-three years for setting up a state-of-the-art project, possibly at Sri City SEZ. KLT is one of the six chassis frame makers in the world, commanding a 75 per cent market share in India in the segment.
Mr. M.S. Seshadri, CEO (Sales for KLT Automotive – Daimler Business & Precision Tubes), said his company specializes in providing tailor-made products to its customers. It has pan-India presence and is looking at developing countries for further growth.
“Even in the present challenging market conditions, the company has decided to move very aggressively in niche areas by talking to individual automotive companies across the globe and offer specialized products which are not only the best in terms of quality but also meet European and American standards. The company’s focus is to be a cost-effective player, which is the need of the hour, and this has enabled us to garner substantial business in the last 24 months”, Mr. Seshadri added.
KLT has employed more than 3,000 people across all its plants with 375 employees at its Chennai plant. With the above greenfield investments in place, the company will generate employment opportunities for an additional 2,500 people in Tamil Nadu in the near future. The company hopes to make Tamil Nadu a commercial and utility frame manufacturing hub for supplying chassis frames, frame long members and child parts to Daimler, Volvo Eicher and other OEMs. It also has plans to export its products to South Africa, Thailand and some countries in the Gulf region, to name a few.
Going global with world-class product quality
KLT Automotive is the first Indian-grown MNC in the field and currently holds nine per cent of the total world market share. We talk to Dr. Dhananjay Kumar, CEO & Global Head – Engineering, Products and Business Development, KLT, in our bid to know more about the company.
KLT has a dominant presence in the segment in the Indian market and has scaled great heights purely by its indigenous technology and focus on quality.
Says Dr. Dhananjay Kumar: “Taking into account any OEM to whom we supply, our contribution in manufacturing the vehicle is 35 per cent. We are trying to improve our quality by implementing advanced technologies in our manufacturing units. We develop all our technology in-house and, till date, we are the only company having no joint venture with any global manufacturer.”
Having established itself as a leader in the chassis frame business, KLT Automotive is now aiming to get into the monocoque frame business as well. The company achieved a sales turnover of Rs. 1,600 crores in FY12 and expects to reach Rs. 4,000 crores by FY14.”
KLT is a pioneer in making precision tubes with new advanced facilities and processes. These tubes have applications in chassis frames, suspension systems, shock absorbers, front forks for two-wheelers and in hydroforming. The company makes automotive chassis frame assemblies for MUVs, pick-ups, and other light commercial vehicles. It is a tier-I supplier of chassis frames for leading Indian and global OEMs such as Tata Motors, M&M, Volvo Eicher, GM, Ford, MAN and Daimler, among others. With its flexible manufacturing system, KLT is able to carry out various frame assemblies of chassis on a mass scale and supply them on just-in-time basis.
“As a tier-I supplier, we use state-of-the-art R&D process and technologies in our welding assemblies and hydroforming components. Since the chassis is the most critical part of any vehicle, high precision welding is done in the fitment of the vehicle, with a high degree of tolerance”, says Dr. Kumar.
KLT uses the press technology for light vehicles and the roll-form for the heavier ones. The company’s roll-form plant at Palghar has a capacity to roll-form 80,000 tons of steel per annum which is set to be increased in the coming years with a view to meeting the requirements of the country’s growing CV industry.
“We have set up manufacturing facilities for hydroforming components and its aggregates for automotive applications, which include a 5,000-ton hydroforming press with pressure intensifier and other relevant auxiliary systems. We also have a CNC tube-bending machine from Chiyoda, Japan, which facilitates bending of tubes prior to hydroforming”, he adds.
KLT Automotive is the first component manufacturer in India to bring in the hydroforming technology and hydroforming press and tooling from Schuler, Germany, considered one of the most advanced across the globe. By using hydroformed components, automobiles can be made lighter while structural strength and stiffness can be improved by reducing the tooling costs driven by the consolidation of several components into a single hydroformed part.
The company has also its plants in Thailand and Dubai, manufacturing ladder tubular chassis for Tata Motors pick-ups in the former and producing roofing and cladding accessories in the latter. It has also recently invested Rs. 160 crores to set up a plant in Johannesburg, South Africa, exclusively for meeting Ford’s requirements.