Auto parts: Continental to take on Bosch

Armed with the recent acquisition of Siemens VDO for $15 billion, Continental India, the subsidiary of the $35 billion German automobile supplier Continental, will expand its operations.

The acquisition had helped Continental India add three more manufacturing units to its fold. The company now plans to take on major players such as Bosch in the Indian automotive components market.

It has six manufacturing facilities and three R&D centres, including two joint ventures with Ashok Leyland and Rico Industries.

Continental may increase its basket of electronic components in India - a shift from the earlier mechanical parts focus pursued by Siemens VDO.

Marqus Distelhoff, Continental's managing director for automotive systems business in India, said: "After Siemens VDO acquisition, our basket of offerings in India has widened and the new Continental will emerge as an integrated systems supplier in this market. The combined organisation will enhance Continental's ability to develop electronic solutions that improve vehicle performance."

With the emission norms and safety legislations getting stricter in India, future automotives will have more and more electronics built around them.

"Therefore, automotive products from our Powertrain, Interior and Chassis and Safety portfolio and ContiTech divisions will have an increased share in value addition," he added.

Continental India, which currently has revenues of Rs 220 crore, is expecting a 60 per cent increase with the new acquisition.

"We expect our products such as diesel/gasoline injection systems, immobilisers, electronic control units for body electronics, steering and airbags, brake systems, instrument clusters and radios to contribute to our growth in India in the near future," Distelhoff said.

The company is also in the process of constructing an automotive electronics plant in Bangalore with an investment of Rs 100 crore, the production of which will start by the second half of next year.

GOING HI-TECH

Continental India, the subsidiary of the $35 billion German Continental, will expand its operations

Continental may increase its basket of electronic components in India