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UK auto parts makers' team coming in Feb

Raghuvir Srinivasan

LONDON, Dec. 8

THE British Department of Trade and Industry (DTI) is leading a delegation of British automotive component manufacturers to India in February 2001.

The visit, coinciding with the IETF trade fair in New Delhi, is part of DTI's efforts to encourage British component manufacturers to forge joint ventures/alliances with their Indian counterparts.

A delegation from the Automotive Directorate of the DTI headed by Mr Barry Cole, Director, had visited India in July this year to assess the scope for promoting joint ventures. This was followed up by a return visit by the Automotive Component Manufactur ers' Association (ACMA), India, to the UK in September.

Based on the expression of interest from various individual component manufacturers in India, the DTI is now organising road shows across Britain. One such road-show is scheduled to be held in Birmingham, the heart of the British auto industry, next week .

These road-shows or seminars are meant to convey to British component manufacturers the expression of interest by specific Indian companies for forging a tie-up in their respective product areas. The DTI would take the interested British companies to Ind ia in February 2001 for a direct meeting with their Indian counterparts. It hopes to forge concrete alliances between Indian and British companies.

Some of the Indian companies that have expressed interest in joint ventures/alliances with British companies are: Rane Engine Valves Ltd (engine components and engine valves), Hi Tech Gears Ltd (engine components and precision forgings), Sundaram Brake L inings Ltd (brake linings and clutch facings), Clutch Auto Ltd (clutches and brake linings) and Majestic Auto Ltd (mopeds).

There are also a host of small and medium enterprises (SMEs) interested in sourcing technology from British component manufacturers.

According to Mr Barry Cole, Indian companies look for assistance in product technologies and process improvements from their British counterparts. He says it is also in the interest of British component manufacturers to spread their business to developin g markets.

The recent Rover experience has taught component manufacturers here the risks of being suppliers to just one customer. A number of component manufacturers discovered that they could be in serious trouble if Rover slowed down, as it was their only buyer.

Besides, vehicle manufacturers in the UK have also been diverting their component sourcing to Europe and Asia, mainly Japan, taking advantage of the strong pound. This has shaken up the domestic components industry forcing it to look up to developing mar kets such as India for fresh business opportunities.