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FAG Bearings to launch rupee-based portal

Jayanta Mallick

CALCUTTA, Sept. 13

FAG Bearings India Ltd, controlled by FAG Kugelfischer George Schafer & Co KGaA, has decided to launch a rupee-based transaction portal.

Mr John Varghese, Deputy General Manager (Marketing) of FAG India, told Business Line here that following the footsteps of its DM 3.5-billion German parent, FAG India had chalked out an elaborate e-commerce plan.

In January this year, FAG Germany launched its e-commerce platform - www.fag.com - mainly for Europe. ``First, this platform would be extended to India and certain other Asian countries,'' Mr Varghese said. He was here in connection with an interactive s ession with members of Eastern India Ball Bearing Merchants Association.

For India, the direct import business of FAG India, currently worth around Rs 80 crore, is to be brought under the ambit of Net trading. ``As soon as uniform VAT is introduced in the country, which is expected shortly, the India-specific rupee-based port al would be launched to take care of the domestic marketing and sales,'' he informed.

The e-commerce plan envisages logistical support from 160 authorised stockists spread over the country, 52 certified importers and a centralised transport agent. ``We do not intend to eliminate the existing marketing intermediaries. The clients would be able to place orders through the Net by registering their ID while the distribution and delivery would be looked after by the marketing network of the company,'' he explained.

FAG Germany holds 51 per cent in FAG India. FIs hold around 33 per cent and balance is held by the staff and public. It has a manufacturing unit as also a 100 per cent EoU in Vadodara in Gujarat. The main unit produces auto range bearings, small range of industrial bearings and wheel bearings for the Railways.

Its EoU manufactures cylindrical roller bearings of small ranges (up to 90 mm diameter). Its exports are currently worth Rs 35 crore. The turnover of FAG India stood at Rs 160 crore in 1999-2000.