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Rane TRW in talks with Ford China for supply of power steering

By Our Staff Reporter

CHENNAI MAY 15. Rane TRW Steering Systems Ltd (RTSSL) is negotiating with Ford China to supply power steerings for the latter's new car project in China. The order is likely to be bagged through TRW Automotive, which owns 50 per cent stake in RTSSL. Ford China plans to make nearly 20,000 cars, code named B376, annually. RTSSL hopes to earn Rs. 14 crores per annum through this contract.

RTSSL will invest about Rs. 40 crores in the next three years in its Tiruchi and Guduvanchery (near Chennai) plants As on March 2003, it had invested nearly Rs. 112.80 crores in these plants. The Tiruchi plant makes fully integrated gears for commercial vehicles. It manufactures nearly 3,500 units a month. The Guduvanchery plant, which makes power rack and pinion gears, has bagged an order from Hyundai Motor India for its Santro cars. It will be supplying nearly for 4,000 units per month and hopes to generate Rs. 10 crores from the contract. The company is also holding talks with the company for supplying similar steerings for its Accent cars. At present, Hyundai is importing the gears from Mando of Korea.

Inaugurating a dedicated line for Hyundai at the RTSSL's Guduvanchery plant to make power rack and pinion gears for Santro, the chairman of the company, L. Lakshman, said the plant planned to manufacture nearly 12,000 to 14,000 power rack and pinion gears a month. At present it is the only supplier of these items to Telco's Indica, Indigo, Ford, Honda, Fiat and General Motors. General Motors was considering RTSSL for supply of steering gears for its export market. It is expected that nearly 1,000 to 1,500 units would be provided.

So far RTSSL has been supplying 800 units for the domestic market. RTSSL recorded a turnover of Rs. 161 crores last year.

Mr. Lakshman said the merger of RTSSL and TRW Rane Occupant Restraints would be completed during the current year. Both companies were equal joint ventures with the Rane Group and TRW Automotive. The turnover of TRW Rane Occupant Restraints was Rs. 20 crores and its plant was located at Singaperumalkoil near here. The merger will enable them to leverage with the customers for better supply of seat belts and steerings.

The High Court has already given the approval for merger. RTSSL hopes to generate an export turnover 20 per cent in the next five years. At present the export turnover was only 7 per cent.

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