In India, SAF Holland has a joint venture with Madras Suspensions Ltd., namely, Madras SAF Holland Ltd., which, with its manufacturing facility in Madurai for air suspension systems for buses and trucks, is already working with Indian OEMs.
Mr. Klaus-Jürgen Stegmann, Vice President – Sales and Marketing, SAF Holland, said: “We are now seriously looking at the possibility of setting up a manufacturing facility for trailer axles in India.” SAF Holland was initially importing trailer axles from its plant in China and selling it in India through Hyva India. It was selling a few hundred trailer axles every year in the India. But early this year, the company decided to deepen its presence in the Indian market considering the infrastructure growth and boom in road construction industry and the exponential growth in the trailer market. The Management Board of SAF Holland has given an in principle approval for setting up of a manufacturing facility in India.
“We are currently examining the possibility for setting up of a manufacturing facility in India for trailer axles, either through a joint venture or on our own. We are already in discussion with a few Indian companies. The preference will be for setting up a facility on its own unless we find a partner who can provide the necessary infrastructure and contacts with OEMs and trailer manufacturers. We are convinced with the market potential, and we should be there in another couple of years”.
Currently the Indian trailer manufacturing industry is high fragmented with only a handful of manufacturers who have reached some scale. But this is bound to change with more organised players and even global players setting up their manufacturing facility in India. Also with the ARAI’s code for Trailer manufacturing on the anvil, the trailer manufacturing industry will get more organised in the years to come.
Global business
Globally SAF Holland is continuing its growth trend even in the 2008 fiscal year. However, the increase in sales and earnings will be weaker than originally forecasted. The determining factors behind this are the repercussions of the financial crisis, the volatile trend for commodity prices, and in particular, the continuing high level of the diesel price. The company is now expecting an increase in sales of up to 5% to around EUR 850 million (previous year: EUR 812.5 million).
SAF Holland has recently completed the acquisition of Georg Fischer Verkehrstechnik GmbH, a former subsidiary of Georg Fischer AG. By acquiring the number two manufacturer of fifth wheels, trilex wheels, and kingpins in the European market, the Company has rounded out its product range in Europe and positioned itself as an international supplier and partner of the truck industry around the world.
“Thanks to our solid business model, we will continue to grow despite the weak environment. A contributing factor will be the commencement of production of axle systems at our North American plant in Warrenton, Missouri, in the fourth quarter. Additionally, the Company has newly negotiated customer contracts with internationally operating manufacturers from China and North America over multi-year terms. With this year’s company acquisitions, we have solidified our unique position as a global supplier and secured additional sales potential in Europe and Asia. We are confident of our ability to continue on the successful path our Company has already begun,” said Rudi Ludwig, CEO of SAF Holland Group.
