New Delhi: Fiat India’s research and development (R&D) team would contribute significantly in the Italian car maker’s programme to design and develop its alliance partner Chrysler’s smallest Jeep, to be launched globally in mid-2014. The company has finalised a plan to roll out nine new models by 2016, some of which would be shipped from India to right-hand-drive markets abroad.
The Fiat Group is investing Euro 1 billion in developing two new products at it facility in Melfi, Italy. Apart from the small Jeep (likely to be named ‘Jeepster’ or ‘Scamp’), the company is working on another crossover vehicle, based on the 500X platform. The second product would have the Fiat badge.
Enrico Atanasio, managing director, Fiat Group Automobiles India Private Limited, said, “Massive market research would be done from the next quarter for the product (Jeepster) in India. We want to understand the requirements of the market here. The Indian R&D (research and development) team would contribute significantly in the development of the product in Melfi. We are looking at leveraging India as an export hub for right-hand drive models. We have excess capacity in India and are looking at exporting vehicles from here to markets in the UK, Japan, Australia, South Africa.” Fiat operates a production unit at Ranjangaon in Maharashtra with partner Tata Motors. Currently, the two companies together utilise about half the facility’s annual production capacity of 1,80,000 units.
The Italian company has also commissioned an R&D set-up, Chrysler India Automotive Private Limited, in Chennai. Engineers at this facility would work towards launching a B-segment sports utility vehicle (SUV) in India in 2015. This product would be based on the product being developed in Melfi. “This is a new category. We have not finalised the specifications yet, but product-wise, it would resemble the compact SUVs launched in the market lately. It would be manufactured at our facility in Ranjangaon,” Atanasio said.
The new product from Fiat is expected to take on the likes of Renault Duster and the soon-to-be launched Ford EcoSport. Since its launch in July 2012, the Duster has recorded sales of 23,731 units. The vehicle is priced at Rs 7.49-11.69 lakh (ex-showroom, Delhi).
The product introductions are part of Fiat’s blueprint to launch nine new and refurbished models in India over three to four years. Apart from the Jeepster, Fiat would also introduce a C-segment SUV from the Chrysler portfolio in 2016. Globally, this product would replace the Compass. Also on the cards are Wrangler, Jeep Cherokee and Abarth. All these products would hit the roads in 2013-14. Fiat would also launch a compact SUV in the second half of 2014.
“With all these product launches, eventually, we aim to have five per cent market share. Our priority is to successfully launch Jeep and Abarth products in India and develop our distribution network in the mid term,” Atanasio said. After the distribution and marketing tie-up with joint venture partner Tata Motors was terminated, Fiat had commenced work to put in place 100 dealerships by the end of this year. It would also establish 20 exclusive showrooms for Jeep-branded products by the year-end.
Fiat plans to sell 11,000-12,000 units in India this year and double the sales in 2014. In the April-December period of 2012, the company sold 5,924 units of the Punto and Linea in India.
Success in my Habit
Friday, January 18, 2013
RCom signs Rs 5,500-crore network deal with Alcatel
Mumbai/ New Delhi: Reliance Communications Ltd (RCoM) on Wednesday signed an eight-year end-to-end network managed services contract with Alcatel-Lucent for $1 billion (around Rs 5,481 crore), covering India’s eastern and southern markets.
The move is expected to be followed by a similar contract with Ericsson for the northern and western markets, to be announced soon.
The comprehensive managed services deal covers wireless, wireline and utilities. It is different from other contracts signed for managed services in the country by competing telcos, which have been limited to wireless services. The deal will also help RCom to dramatically trim its work force, with a little over 4,000 or 15 per cent of its total of around 26,000 shifting to Alcatel within the next 90 days.
Once the Ericsson deal is also sealed, 9,000 to 10,000 employees involved in the network business are expected to shift to the two companies.
Currently, RCom has a 33:67 joint venture (JV) with Alcatel-Lucent, announced in 2008 for managed services but was restricted to only wireless. After this deal, the JV will cease to exist. Explained Gurdeep Singh, president and chief executive for the wireless business: "The deal will mean that we do not have to deal with multiple vendors, which is essential as the market moves towards high quality data services. Also, it will ensure predictability in our cost structure, as it will be linked to quality of service and customer satisfaction."
He declined to comment on the proposed deal with Ericsson, saying an agreement with another equipment company would be announced soon.
Sources in the know say the savings in cost after both deals get through could 15-20 per cent, significant in the business. Especially when the company has Rs 36,000 crore of debt. RCom had earlier thought of giving the contract to just one vendor but decided it would be strategically better to have two. Nokia Siemens Network, Huawei Technologies and ZTE were also in the race for the project.
The contract would entail outsourcing end-to-end management services, including operational planning of the network (which most companies keep to themselves), management and maintenance of GSM, CDMA and wireline networks, fibre, utilities, internet protocol and field assurance (quality control). Munish Seth, managing director of Alcatel-Lucent India, said this was one of the largest and most strategic contracts till now for the unit. The managed services model was introduced in the country by Bharti Airtel, which has signed long-term contracts with Ericsson, Nokia Siemens Network and Huawei for second-generation and third-generation services.
Bharti also had a comprehensive outsourcing deal with IBM for information technology solutions for a few years. Vodafone has managed services contracts with Ericsson and Nokia Siemens.
The move is expected to be followed by a similar contract with Ericsson for the northern and western markets, to be announced soon.
The comprehensive managed services deal covers wireless, wireline and utilities. It is different from other contracts signed for managed services in the country by competing telcos, which have been limited to wireless services. The deal will also help RCom to dramatically trim its work force, with a little over 4,000 or 15 per cent of its total of around 26,000 shifting to Alcatel within the next 90 days.
Once the Ericsson deal is also sealed, 9,000 to 10,000 employees involved in the network business are expected to shift to the two companies.
Currently, RCom has a 33:67 joint venture (JV) with Alcatel-Lucent, announced in 2008 for managed services but was restricted to only wireless. After this deal, the JV will cease to exist. Explained Gurdeep Singh, president and chief executive for the wireless business: "The deal will mean that we do not have to deal with multiple vendors, which is essential as the market moves towards high quality data services. Also, it will ensure predictability in our cost structure, as it will be linked to quality of service and customer satisfaction."
He declined to comment on the proposed deal with Ericsson, saying an agreement with another equipment company would be announced soon.
Sources in the know say the savings in cost after both deals get through could 15-20 per cent, significant in the business. Especially when the company has Rs 36,000 crore of debt. RCom had earlier thought of giving the contract to just one vendor but decided it would be strategically better to have two. Nokia Siemens Network, Huawei Technologies and ZTE were also in the race for the project.
The contract would entail outsourcing end-to-end management services, including operational planning of the network (which most companies keep to themselves), management and maintenance of GSM, CDMA and wireline networks, fibre, utilities, internet protocol and field assurance (quality control). Munish Seth, managing director of Alcatel-Lucent India, said this was one of the largest and most strategic contracts till now for the unit. The managed services model was introduced in the country by Bharti Airtel, which has signed long-term contracts with Ericsson, Nokia Siemens Network and Huawei for second-generation and third-generation services.
Bharti also had a comprehensive outsourcing deal with IBM for information technology solutions for a few years. Vodafone has managed services contracts with Ericsson and Nokia Siemens.
Textiles Secretary to launch India’s First Technology Innovation Centre
New Delhi: The Apparel Training & Design Centre (ATDC) under the Education & Training Initiatives of Apparel Export Promotion Council (AEPC) is going to set up India’s first ‘Technology Innovation Research Centre’ at the ATDC-Training of Trainers’ Academy, Gurgaon, in collaboration with JUKI India Pvt. Ltd. This Centre will demonstrate leading edge technologies and undertaking applied research. The ATDC-JUKI TECH Innovation Centre is an important initiative to strengthen the Apparel Industry, especially the SMEs, to adopt new technologies for increasing productivity, efficiency and quality for better price realisation and better global competitiveness.
The Centre will be launched by Textiles Secretary Smt. Kiran Dhingra, IAS tomorrow in the presence of Dr. A. Sakthivel, Chairman, AEPC, ATDC & IAM; Hari Kapoor, Vice-Chairman, ATDC; and a team from JUKI.
The ATDC-JUKI TECH Innovation Centre will be a platform where industry and academia can focus on showcasing and demonstrating leading edge technology and carrying out applied ‘Research’ which is a key word in SMART (Skills for Manufacturing of Apparel through Research and Training). Applied ‘Research’ combined with technology training can become a potent force to catalyse advancement of apparel production techniques and praxis, that would be relevant for India’s apparel manufacturing environment.
Smt. Dhingra will also be the Chief Guest and Convocation Speaker on the 2nd Convocation of Institute of Apparel Management at the Apparel House Auditorium tomorrow. The Institute of Apparel Management, which over the last three academic years has carved a niche as a premier fashion institute, is celebrating its 2nd Convocation. The Guests of Honour for the Convocation are Shri V. Srinivas, Joint Secretary (Exports), Ministry of Textiles, Government of India and Shri Sunil Sethi, President, Fashion Design Council of India. The students’ innovative displays will be also available for viewing at Lynx-I & II during the day of the Convocation.
ATDC-JUKI is also organising a seminar on “Intelligent Sewing Systems” at the ATDC – JUKI Tech Innovation Centre on January 18, 2013. This seminar deals with contemporary production practices that would help you to enhance productivity.
The Centre will be launched by Textiles Secretary Smt. Kiran Dhingra, IAS tomorrow in the presence of Dr. A. Sakthivel, Chairman, AEPC, ATDC & IAM; Hari Kapoor, Vice-Chairman, ATDC; and a team from JUKI.
The ATDC-JUKI TECH Innovation Centre will be a platform where industry and academia can focus on showcasing and demonstrating leading edge technology and carrying out applied ‘Research’ which is a key word in SMART (Skills for Manufacturing of Apparel through Research and Training). Applied ‘Research’ combined with technology training can become a potent force to catalyse advancement of apparel production techniques and praxis, that would be relevant for India’s apparel manufacturing environment.
Smt. Dhingra will also be the Chief Guest and Convocation Speaker on the 2nd Convocation of Institute of Apparel Management at the Apparel House Auditorium tomorrow. The Institute of Apparel Management, which over the last three academic years has carved a niche as a premier fashion institute, is celebrating its 2nd Convocation. The Guests of Honour for the Convocation are Shri V. Srinivas, Joint Secretary (Exports), Ministry of Textiles, Government of India and Shri Sunil Sethi, President, Fashion Design Council of India. The students’ innovative displays will be also available for viewing at Lynx-I & II during the day of the Convocation.
ATDC-JUKI is also organising a seminar on “Intelligent Sewing Systems” at the ATDC – JUKI Tech Innovation Centre on January 18, 2013. This seminar deals with contemporary production practices that would help you to enhance productivity.
India, US team up for agri extension training in Africa
Hyderabad: India and the United States have joined hands to provide extension training to agricultural professionals in three African countries of Liberia, Kenya and Malawi.
Latest Techniques
National Institute of Agricultural Extension Management and US Agency for International Development will equip 180 professionals from these countries in the next two years with latest techniques and tools in improving productivity, public private partnerships, strengthening agricultural value chains and market institutions.
Addressing 30 participants from the three countries here on Wednesday, Jonathan Shrier, Special Representative for Global Food Security in the US Department of State, said the developing countries were home to 87 crore hungry people despite the progress made since the Green Revolution.
Major Challenges
Climate change, shrinking natural resources, a decline in per capita cultivable land and rising demands for food were major challenges the world faced now.
“We need game-changing innovative solutions to address these challenges,” he said.
India, which emerged as a hub for low-cost, effective local innovations can help address these issues around the world, he added.
Latest Techniques
National Institute of Agricultural Extension Management and US Agency for International Development will equip 180 professionals from these countries in the next two years with latest techniques and tools in improving productivity, public private partnerships, strengthening agricultural value chains and market institutions.
Addressing 30 participants from the three countries here on Wednesday, Jonathan Shrier, Special Representative for Global Food Security in the US Department of State, said the developing countries were home to 87 crore hungry people despite the progress made since the Green Revolution.
Major Challenges
Climate change, shrinking natural resources, a decline in per capita cultivable land and rising demands for food were major challenges the world faced now.
“We need game-changing innovative solutions to address these challenges,” he said.
India, which emerged as a hub for low-cost, effective local innovations can help address these issues around the world, he added.
MeadWestvaco to invest Rs 1,000 cr for expansion
Ahmedabad: The US-based packaging major MeadWestvaco Corporation on Tuesday said it will invest $184 million (Rs 1,000 crore) to expand the company’s presence in industrial packaging and triple its sales in India.
The US major, which signed a MoU with the State Government recently, said the investment will be over the next three to five years in the packaging and paperboard industry in India, and create 800 jobs in this industry.
The investment includes the purchase of Vapi-based Ruby Macons Ltd, and plans to expand the current production at the facility with the installation of a new paper machine to manufacture new paperboard products and grades.
The expansion is already underway and should increase the production starting in 2013, John Luke, Jr, Chairman and Chief Executive Officer, MeadWestvaco, said in a statement here.
In November 2011, MeadWestvaco had announced the acquisition of Ruby Macons Ltd, a market leader in corrugated packaging materials in India, as part of the company’s growth strategy, including its emphasis on growth in emerging markets.
This will expand the company’s presence in industrial and agricultural packaging in India, which already includes a converting facility in Pune making rigid, humidity-resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliances and pharmaceuticals.
The US major, which signed a MoU with the State Government recently, said the investment will be over the next three to five years in the packaging and paperboard industry in India, and create 800 jobs in this industry.
The investment includes the purchase of Vapi-based Ruby Macons Ltd, and plans to expand the current production at the facility with the installation of a new paper machine to manufacture new paperboard products and grades.
The expansion is already underway and should increase the production starting in 2013, John Luke, Jr, Chairman and Chief Executive Officer, MeadWestvaco, said in a statement here.
In November 2011, MeadWestvaco had announced the acquisition of Ruby Macons Ltd, a market leader in corrugated packaging materials in India, as part of the company’s growth strategy, including its emphasis on growth in emerging markets.
This will expand the company’s presence in industrial and agricultural packaging in India, which already includes a converting facility in Pune making rigid, humidity-resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliances and pharmaceuticals.
NMIMS ties up with CETYS University to develop capabilities
Mumbai: Narsee Monjee Institute of Management Studies (NMIMS) has signed a pact with CETYS University of Mexico to develop competencies and capabilities of both institutes.
The association will include preparation of faculty at doctorate levels and in particular engineering courses. CETYS University will use NMIMS's expertise to pursue doctoral programmes, NMIMS said in a release. It will also involve enriching curriculum of both universities in programmes that need to be constantly researched. Also, there will be a student exchange programme for MBA students so that they get an opportunity to go abroad to understand and experience other regions of the world. Short-term sessions of the programme will begin from March. Groups of students who are found suitable for the programme will get to participate in a 2-3 weeks session in engineering and management practices.
"NMIMS has always been ambitious on various ways to prepare students for the global economy and the mission has been to give global focused education to its students. The CETYS University of Mexico was also founded on the mission of enriching and value based education to its students," said Dr Rajan Saxena, vice chancellor, NMIMS University.
"Technology and distant education go hand in hand...The idea is to develop virtual technological innovations to educate and give value addition to education," he said. Both universities work on similar technology, i.e., blackboard technology which ensures that the convergence is easy. It reduces the burden of getting faculties to the region and also helps in offering a global reach.
"Both the universities have been working towards collaborative options for some time now and the MoU was the next logical step to formalise and strengthen the association," said Dr Fernando Leon - Garcia, president, CETYS University.
The association will include preparation of faculty at doctorate levels and in particular engineering courses. CETYS University will use NMIMS's expertise to pursue doctoral programmes, NMIMS said in a release. It will also involve enriching curriculum of both universities in programmes that need to be constantly researched. Also, there will be a student exchange programme for MBA students so that they get an opportunity to go abroad to understand and experience other regions of the world. Short-term sessions of the programme will begin from March. Groups of students who are found suitable for the programme will get to participate in a 2-3 weeks session in engineering and management practices.
"NMIMS has always been ambitious on various ways to prepare students for the global economy and the mission has been to give global focused education to its students. The CETYS University of Mexico was also founded on the mission of enriching and value based education to its students," said Dr Rajan Saxena, vice chancellor, NMIMS University.
"Technology and distant education go hand in hand...The idea is to develop virtual technological innovations to educate and give value addition to education," he said. Both universities work on similar technology, i.e., blackboard technology which ensures that the convergence is easy. It reduces the burden of getting faculties to the region and also helps in offering a global reach.
"Both the universities have been working towards collaborative options for some time now and the MoU was the next logical step to formalise and strengthen the association," said Dr Fernando Leon - Garcia, president, CETYS University.
Four FDI Proposals Amounting to Rs. 1286.75 Crore Approved by FIPB
New Delhi: Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on December 31, 2012, the Central Government has approved four (04) proposals of Foreign Direct Investment (FDI) amounting to Rs. 1286.75 crore approximately.
The following four (04) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows(` In crore)
INDUSTRIAL POLICY & PROMOTION
1 M/s Pran Beverages (India) Pvt. Ltd., Kolkata Change in foreign collaborator and increase in foreign equity participation to carry out the business of manufacture of fruits/vegetables juices and their concentrates, squashes and powders, and manufacture of Beverages n.e.c. 30.25
PHARMACEUTICALS
2 M/s Hospira Inc., USA, M/s Hospira Pte Ltd., Singapore, and M/s Hospira Healthcare India Pvt. Ltd. Induction of foreign equity into Indian company which will acquire manufacturing facilities in the pharmaceuticals sector. 1194.75
3 M/s Perrigo API India Pvt. Ltd., Mumbai Induction of foreign equity to carry out the business of manufacture of pharmaceutical ingredients. 55.00
TELECOMMUNICATIONS
4 M/s InterCall Asia Pacific Holdings Pvt. Ltd., Singapore To set up a WOS to undertake the business of providing audio, video and web conferencing services for business, commercial, banking and other establishments. 6.75
2.The following two (02) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Alliance Insurance Brokers Private Limited, Mumbai Induction of foreign equity by way of issue and transfer of equity shares to carry out the business of insurance broking.
2 M/s Aon Holdings B.V., Netherlands Post facto approval for induction of foreign equity to carry out the business of Insurance broking, and risk advisory services.
3.The following one (01) proposal has been withdrawn from the Agenda:
Sl. No Name of the applicant
1 M/s Ingka Holding Overseas B.V.
The following four (04) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows(` In crore)
INDUSTRIAL POLICY & PROMOTION
1 M/s Pran Beverages (India) Pvt. Ltd., Kolkata Change in foreign collaborator and increase in foreign equity participation to carry out the business of manufacture of fruits/vegetables juices and their concentrates, squashes and powders, and manufacture of Beverages n.e.c. 30.25
PHARMACEUTICALS
2 M/s Hospira Inc., USA, M/s Hospira Pte Ltd., Singapore, and M/s Hospira Healthcare India Pvt. Ltd. Induction of foreign equity into Indian company which will acquire manufacturing facilities in the pharmaceuticals sector. 1194.75
3 M/s Perrigo API India Pvt. Ltd., Mumbai Induction of foreign equity to carry out the business of manufacture of pharmaceutical ingredients. 55.00
TELECOMMUNICATIONS
4 M/s InterCall Asia Pacific Holdings Pvt. Ltd., Singapore To set up a WOS to undertake the business of providing audio, video and web conferencing services for business, commercial, banking and other establishments. 6.75
2.The following two (02) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Alliance Insurance Brokers Private Limited, Mumbai Induction of foreign equity by way of issue and transfer of equity shares to carry out the business of insurance broking.
2 M/s Aon Holdings B.V., Netherlands Post facto approval for induction of foreign equity to carry out the business of Insurance broking, and risk advisory services.
3.The following one (01) proposal has been withdrawn from the Agenda:
Sl. No Name of the applicant
1 M/s Ingka Holding Overseas B.V.
India and Vietnam have signed an MoU on MSME
New Delhi: India and Vietnam have signed a memorandum of understanding (MoU) for identifying thrust areas and opportunities, and developing institutional framework for micro, small and medium enterprises (MSME) in Vietnam.
Ministry of Planning and Investment of Vietnam and India's Ministry of MSME have signed the MoU during the ongoing four day state visit of Mr Hamid Ansari, Vice President of India to Vietnam.
The MoU also aims at promotion of partnership projects and institutional cooperation between the two countries, organising trade fairs and exhibitions for marketing the products of MSME, exchange of business missions to initiate transfer of technology and business alliance, and providing training for improvement of managerial and technical skills for MSME. It is a part of India’s efforts to further strengthen economic ties with Vietnam.
India and Vietnam have set a bilateral trade and investment target of US$ 7 billion by 2015. A Joint Committee has been set up by Ministries of both the countries to monitor the implementation of the MoU
Ministry of Planning and Investment of Vietnam and India's Ministry of MSME have signed the MoU during the ongoing four day state visit of Mr Hamid Ansari, Vice President of India to Vietnam.
The MoU also aims at promotion of partnership projects and institutional cooperation between the two countries, organising trade fairs and exhibitions for marketing the products of MSME, exchange of business missions to initiate transfer of technology and business alliance, and providing training for improvement of managerial and technical skills for MSME. It is a part of India’s efforts to further strengthen economic ties with Vietnam.
India and Vietnam have set a bilateral trade and investment target of US$ 7 billion by 2015. A Joint Committee has been set up by Ministries of both the countries to monitor the implementation of the MoU
Tuesday, January 15, 2013
Hero MotoCorp begins work on Rajasthan plant
New Delhi: Two-wheeler manufacturer Hero MotoCorp (HMCL) on Monday said it has started construction of its fourth manufacturing plant and a new Global Parts Centre (GPC) at Neemrana, in Rajasthan.
The company will invest Rs 550 crore in setting up this plant and the GPC. Both facilities are expected to be operational towards the end of financial year 2013-14, it said.
“The commencement of work on the new plant is indicative of our intention and strategy for the future. We foresee a revival in market sentiment sooner than later and, when it happens, we will be ready to meet the upsurge in demand,” Pawan Munjal, Managing Director and Chief Executive Officer, HMCL, said.
The Neemrana plant, spread over 47 acres, will provide direct employment to over 1000 people, and have an installed capacity of 7.50 lakh units per annum.
“At the same time, we will be setting up a modern GPC spread over 35 acres at Neemrana,” he said.
The Global Parts Centre is expected to be operational in the third quarter of the next financial year (2013-14) and will initially employ 400 people.
The GPC will have an automated storage and retrieval system, automated packaging and sorting systems, online tracking of parts using a warehouse management system, lean manufacturing systems and, importantly, the green building concept, Munjal added.
The company will invest Rs 550 crore in setting up this plant and the GPC. Both facilities are expected to be operational towards the end of financial year 2013-14, it said.
“The commencement of work on the new plant is indicative of our intention and strategy for the future. We foresee a revival in market sentiment sooner than later and, when it happens, we will be ready to meet the upsurge in demand,” Pawan Munjal, Managing Director and Chief Executive Officer, HMCL, said.
The Neemrana plant, spread over 47 acres, will provide direct employment to over 1000 people, and have an installed capacity of 7.50 lakh units per annum.
“At the same time, we will be setting up a modern GPC spread over 35 acres at Neemrana,” he said.
The Global Parts Centre is expected to be operational in the third quarter of the next financial year (2013-14) and will initially employ 400 people.
The GPC will have an automated storage and retrieval system, automated packaging and sorting systems, online tracking of parts using a warehouse management system, lean manufacturing systems and, importantly, the green building concept, Munjal added.
Apollo Tyres opens R&D centre in Netherlands
New Delhi: Apollo Tyres on Monday opened its global research and development (R&D) centre in Enschede, the Netherlands. It will serve as a hub for the development and testing of car and van tyres for all product brands — Apollo, Vredestein and Dunlop (32 countries in Africa) — of the company, it said.
Named Apollo Tyres Global R&D BV, the new centre will start operations with more than 100 people from various parts of the world, including 20 car tyre specialists from India and South Africa. It will later be scaled-up to nearly 150 people.
R&D Restructuring
“The Global R&D centre is an important milestone in our journey to become a $ 6 billion tyre company by 2016,” Onkar S. Kanwar, Chairman, Apollo Tyres said.
Recently, the company restructured its R&D team, across its three key geographies, to create synergy and greater alignment to the company’s growth aspirations.
Two Global Hubs
In line with this strategy, the company is bringing together its R&D resources comprising almost 250 people in Africa, Europe and India to create two global R&D hubs — Enschede, the Netherlands for car and van tyres and Chennai, for commercial vehicle tyres.
Both R&D departments will be in close contact with original equipment manufacturers and replacement clients, test centres, raw material suppliers and research institutes.
“Going forward, R&D will continue to be the cornerstone of our vision, as we plan to ramp up the R&D spend to 3 per cent of our sales revenue,” Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres said.
Named Apollo Tyres Global R&D BV, the new centre will start operations with more than 100 people from various parts of the world, including 20 car tyre specialists from India and South Africa. It will later be scaled-up to nearly 150 people.
R&D Restructuring
“The Global R&D centre is an important milestone in our journey to become a $ 6 billion tyre company by 2016,” Onkar S. Kanwar, Chairman, Apollo Tyres said.
Recently, the company restructured its R&D team, across its three key geographies, to create synergy and greater alignment to the company’s growth aspirations.
Two Global Hubs
In line with this strategy, the company is bringing together its R&D resources comprising almost 250 people in Africa, Europe and India to create two global R&D hubs — Enschede, the Netherlands for car and van tyres and Chennai, for commercial vehicle tyres.
Both R&D departments will be in close contact with original equipment manufacturers and replacement clients, test centres, raw material suppliers and research institutes.
“Going forward, R&D will continue to be the cornerstone of our vision, as we plan to ramp up the R&D spend to 3 per cent of our sales revenue,” Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres said.
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