Suspa’s increasing focus on industrial segment

El-Azzeh takes over as Managing Director

Mr. Murad El-Azzeh has taken over as the Managing Director of Suspa Pneumatics (India) Pvt. Ltd. from Mr. Werner Kleinschmit. A mechanical engineer from Austria, Mr. El-Azzeh comes with years of experience in production. Though relatively new to the automotive industry, he has his passion for automobiles and has been a car mechanic himself.

“In India, the automotive industry is very competitive. It is not just the growth but the speed of change which makes it challenging and interesting. Suspa India is in a transition phase. We have expanded our capacity to 4.3 million gas springs per annum, which is a big step forward for the company. We have a major share of business in the Indian automotive sector, where we have set very high standards in quality and performance and will continue to improve on it”, says Mr. El-Azzeh.

Suspa is a global player in gas springs and dampers, as well as crash management, safety and height adjustment systems. The company operates in two major verticals – Automotive and Industrial. Globally, 40 per cent of Suspa’s business comes from automotive and the remaining 60 per cent comes from the industrial segment.

In India, the business has been a bit different. The prime driver of business for Suspa in India has been the passenger car segment, more particularly the small cars and hatch back which use gas springs on the rear luggage compartment. Today the company has garnered an 80 per cent market share in India catering to the requirements of Maruti, Tata Motors, Hyundai and General Motors. Suspa has recently won the mandate for supply of gas springs to Honda and Nissan.

Mr. El-Azzeh says: “With such a dominating share of business in the passenger car segment, an important area of additional focus for the future would be the industrial and non passenger car automotive segment. We have to take a much stronger approach towards the industrial segment. Globally Suspa is a market leader in this segment and we would like to improve our business in India as well”.

Suspa India is targeting segments like trucks, buses, tractors, construction equipments, gensets and other industrial applications. With the entry of global manufacturers in the above segments in India, the company sees a good opportunity for high quality products. “We are working closely with most of the commercial vehicle manufacturers for the new generation of trucks and buses. We are at the right place at the right time and are confident of growing our business in the industrial segment”, adds Mr. El-Azzeh.

Suspa India is a major supplier of gas springs to JCB, both in India and the UK, TAFE, Fiat, New Holland, International Tractors, Caterpillar, L&T; and Mahindra. Most of the tractors exported out of India are fitted with gas springs for lifting the front hood.

Another interesting product segment is the lockable gas springs for seat recliners. Varilock is globally a popular brand of lockable gas springs for seat recliners offered by Suspa. This product is mainly used on seats on buses and coaches and other industrial applications. Currently Suspa India is importing and offering it to a few customers in the domestic market but if it gains volumes then the company will consider local manufacturing.

Despite the recession, 2009 was a good year for Suspa India with a 10 per cent growth as the passenger car segment continued to do well.

According to Mr. El-Azzeh, with increased focus on industrial and the continued growth in the automotive segment, his company is already thinking of further expansion, but a lot depends on how the market progresses. “We need to assess the customer demand for the next few years and if the growth is consistent we will then decide on expansion.”

In view of the prospects of further growth in the automotive business and the focus on industrial business, Suspa India is targeting a 30 per cent growth in turnover in 2010.