Thursday, 28 July 2011

US auto parts maker Tenneco to set up a plant in Pune




While the automobile and automotive industry is experiencing slowdown for some time now, the inflow into the Indian auto market has not stopped. Now it has been reported that the US-based auto-parts' maker Tenneco is setting up a plant in Chakan, Pune to cater to the increasing demand from global clients such as Volkswagen in Pune and General Motors in Halol.
According to a The Business Line report, the Tenneco India Managing Director, Abhijit Mukherjee stated that the new plant, which is being set up in Chakan, will consolidate the operations in Pune and Halol. “The new plant can cater to about 1,000 cars a day,” He said but did not give investments details regarding the new plant. Tenneco makes suspension, front struts and exhaust systems in its five plants across the country. “Over the next five years, we anticipate a CAGR greater than the Indian average based on already booked business,” Mukherjee said.

The report also mentioned that Tenneco India is growing faster than the rapidly growing automotive industry in India, he said. In the last five years, Tenneco has opened two new greenfield sites — in Bawal (near Delhi) and in Oragaddam (Chennai) — to meet its growth plans. The report quoted Mukherjee as saying that the Indian market size of passenger cars is roughly 2.5 million units and Tenneco's market share in ride control is 26 per cent. In emission control, the market share of Tenneco is 24 per cent in one product category and 13 per cent in another. “Almost 7 per cent of our current India revenues are from CVS (commercial vehicle systems) and specialty vehicle, and the remaining from light vehicles. By 2015, Tenneco India plans to increase CVS and specialty vehicles business to 17 per cent of its total revenue, he added. 

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