NORMA Group Products India Pvt. Ltd., currently a wholly-owned subsidiary of the NORMA Group, offers a variety of products like clamps and connectors for the automotive industry. The company is ramping up its operations by investing in a new facility in Pune. With the localization of customer services in India, the company expects a positive development of its business activities as well as rapid expansion of its customer base in the country.
In a free-wheeling discussion with MOTORINDIA, Mr. Sacheen Lathkar, General Manager, NORMA India, not only explains a number of vital points related to the company raised, but broadly outlines the production technology, capacity hike, export performance and prospects, etc.
Excerpts:
MOTORINDIA (MI): To begin with, kindly give us an update on Norma’s journey in India since your entry in 2009.
Sacheen Lathkar (SL): NORMA India, founded in 2008, commenced production in Pune as a 80:20 joint venture with Taurus Flexibles, a manufacturer of hoses for commercial vehicles. In 2011, we decided to take over the 20% share of our joint venture partner and to invest in a new site. NORMA India manufactures and provides joining solutions to OEMs such as automotive and industrial clients. We manufacture fuel line assemblies, crankcase ventilation systems, urea lines, vent lines, clamps and connectors to a wide range of industries. NORMA introduced nylon instead of steel tubes with a view to reducing weight and emissions. NORMA India now supports several Indian and foreign OEMs with its unique Engineered Joining Technology providing solutions for commercial and passenger vehicles, agricultural and construction equipment, trains, shipbuilding, aviation, infrastructure and water pipelines.
The NORMA Group’s in India has been exceptional. We have grown significantly year over year. Being a technology-driven partner, we have established ourselves with major Indian OEMs within a short span of time. Currently we are driving our Distribution Services activities by setting up a strong distribution network that involves our distribution centre and dealership co-operation. Providing a uniquely wide range of engineered joining technologies, the group is a one-stop shop to customers across all industries.
MI: What is the current product range you offer to the automotive industry?
SL: The NORMA Group offers all product categories to the automotive industry: clamp, connect and fluid. This includes plastic fuel lines, transmission oil cooler tube systems and other fluid systems, quick connectors and worm-drive hose clips for charge air and exhaust systems. NORMA Group product solutions help make engines lighter in weight and reduce assembly time. Due to tighter emission standards for the automotive industry and other sectors, the demand for the group’s engineered joining technology is growing consistently. These standards also apply increasingly to the Indian market, which offers considerable growth potential. The group products also help customers to comply with tighter emission norms (Bharat Stage V norms).
MI: Do you have any import-substitution products on offer?
SL: NORMA India has successfully localized one group product family for the Indian market by the brand TERRY. There are a few more products in the pipeline for localization during Q4 2012 – Q1 2013.
MI: What is the share of your automotive business as between OEMs and the aftermarket? Are you a single source of supply for any company?
SL: In 2011, NORMA Group products sold directly into passenger vehicles contributed around 28 per cent of global sales. Including commercial vehicles, indirect sales and sales to the aftermarket, the total contribution is estimated at around 40 per cent.
The NORMA Group serves customers from both automotive (passenger and commercial vehicles) and non-automotive sectors such as agricultural and construction machinery. Our clients include Mahindra & Mahindra, Fiat, Volkswagen, Ashok Leyland, Kirloskar Group, Cummins Engineering, M&M Tractors, etc.
As part of our growth strategy for the Indian market, we are also expanding our distribution network. Now wholesalers, suppliers of spare parts to OEMs and hardware stores in eight States have had access to NORMA Group products. Since December 2011, the group has being consistently adding to its local distribution team in order to meet growing demand. With more than 30 distributors, major industrial regions have already been covered.
NORMA India is a single source to customers such as VW and Fiat for their fuel line applications. The company is also expanding its share of business with other OEMs like M&M, Ashok Leyland-Nissan, Cummins, Kirloskar, etc.
MI: An update on the new Pune plant. How is the work progress and when will it be operational? What product range will it make and what capacities does it have?
SL: With the new plant, the NORMA Group is enhancing its production capacity to keep pace with the growing Indian market demand for connectors and joining elements. Production is expected to start in September. The new plant will increase the group’s production capacity fivefold.
MI: How are the export prospects for your products made in India?
SL: India’s dynamic market offers us huge growth opportunities. Our stronger local presence brings us closer to our clients in India and gives us the opportunity to meet their individual needs. Besides serving our local Indian clients, we will leverage the new plant’s capacity in order to deliver our joining technology solutions to our customers around the globe.
MI: How have the last year and the first half of this year been in terms of numbers? Could you give us your turnover figures and targets?
SL: The year 2011 was an outstanding one for the NORMA Group. We had set new sales and earnings records during the year. In the first quarter of 2012, we reported a rise in sales and earnings, thereby continuing the growth momentum.
NORMA Group’s steady growth shows that it is moving the right direction and that its business model is working most successfully. We will continue to invest in our company and actively increase capacities to ensure further growth.
MI: Could you give us a brief on your current sales and service network? How are your expansion plans unfolding?
SL: Based on many years of experience, the NORMA Group offers state-of-the-art technology. NORMA India focuses on customizing the engineered joining technology to the local market. We achieve this by local manufacturing and by distributing our products and solutions via our distribution centre as well as various local dealers.
NORMA India is currently setting up a distribution network across India where dealers of its products sell to a wide range of industries. NORMA India also customizes its technology to suit local Asian markets. This includes local manufacturing of engineered joining technology products and solutions which are well-established in the mature markets around the world.
MI: Finally, could you update on your R&D structure for developing India-specific products?
SL: The NORMA Group provides engineered solutions tailored to the customer needs for reducing emissions, leakage, weight, space requirements and assembly time. Compatibility with modularized production processes and reduced assembly times of our products help them to optimize their production processes. For this reason, we have developed a comprehensive basic research and development division.
New legislation has led to lower emissions thresholds with which our customers have to comply. The only way to do this is by conducting intensive research and developing new products and solutions. Against this backdrop, we work together with our customers to find innovative and high-performance joining technology in order to open up new areas of application for the existing products. The ability to directly address the requirements of the market and integrate them seamlessly into new, innovative products is a key part of our success. We provide products for current applications to meet the needs of our customers while keeping an eye on long-term developments and trends.
We recognize the needs of the market ahead of time and develop solutions which can guarantee our customers an advantage in terms of innovation. Committed teams of sales employees and technicians work jointly on these development projects.
We take a flexible and innovative approach to developing the optimal solutions to meet the requirements of our industrial customers, no matter whether it’s a standardized joining element, a multi-component section or a complex piping system.
NORMA India has recently started “Global Engineering” activities to support global innovation projects. We have a team of six engineers involved in R&D activities and expect the team to be strengthened in due course.