German driveline and chassis maker, ZF, has announced its plan to invest around 200 million Euros, which is nearly Rs. 1800 crore, in its India business, over the next few years. The company is doubling down its focus in India and is also looking into strategic consolidation of its business domains with renewed impetus to drive growth over the next decade. To that effect, the company has mapped out a four-point strategy, which revolves around four key areas, namely – Readapt, Reinforce, Retain, and Restructure. The company says that this new strategy will also help it create a new brand identity in the country.
Commenting on the strategic imperative for India, Dr Holger Klein, ZF Member of the Board responsible for Asia Pacific and India said “Despite the current severe situation regarding COVID-19 in India, the ZF Group strongly believes in the long-term growth potential of the region. Therefore, we are launching a Refresh India four-point strategy. This includes an intensive plan to rapidly grow our business in one of the largest automotive markets in the world. We plan to invest around 200 million Euros in the next few years to aid this growth through product launches, manufacturing and engineering footprint expansions, hiring and other developments across all business domains.”
As for its four-point plan, under ‘Readapt’ the company plans to have introduced advanced global technological solutions at an affordable value for the Indian market by focusing on higher levels of localization and a strong thrust on design-to- market-solutions. By ‘Reinforce’ the company mean ZF will continue to leverage India’s manufacturing capabilities by expanding its footprint in the country. The Group will set up a new manufacturing facility in Chennai along with plans to increase the utilization of other facilities. In fact, the company claims that India will become a global hub for worldwide requirements across Research & Development, IT & Digital Innovation, Manufacturing & Material sourcing.
ZF also says that it also plans to ‘Retain’ the position it has achieved in India with products that high on safety, quality and sustainability. At the same time, the company also claims that it will continue investing in the overall development of its employees. With regards to restricting the company says that ZF Group has divested its shareholding interest of 49 per cent in Brakes India to meet the Anti-Trust guidelines of CCI, post the acquisition of WABCO. Furthermore, ZF Group is a majority stakeholder of WABCO India and is undertaking the necessary next steps to ensure all regulatory guidelines are being adhered to. The integration of WABCO into the ZF Group is underway and is expected to be completed by the end of the year, as intended.
Klein further added, “ZF is also well positioned to shape the future E mobility and next-generation technology in the Indian market through its global portfolio. ZF is partnering with Mahindra Racing for Formula E supplying silicon carbide-based power electronics alongside the electric motor and transmission. This partnership heralds’ endless possibilities for the future introduction of such advanced technologies in the region as these technologies get tested under the harshest conditions.”
News source- Carandbike