The Schuler Group of Germany, a 170-year old Euro 1 billion manufacturer of metal-forming machine tools, is looking at India as a sourcing hub for forging components for its global manufacturing plants. The group has already started sourcing forging components through its Indian subsidiary Schuler India Pvt Ltd, and last year it sourced Rs 1 crore worth of components to begin with.
“We have identified many Indian companies, both in north and south India, for various components like forging, casting, sound enclosures among others. Indian manufacturers have capabilities to produce high quality components meeting DIN standard (German quality). We made a small beginning last year and going forward we intend to source at least Euro 5 million worth of components from India,” Markus Ernst, member of the board, Schuler Group, Germany, said.
Schuler has capabilities in metal-forming technology, delivers production equipment, tools and dies, process know-how and services for the entire metalworking industry. Its customers in India include HAL, Heavy Vehicle Factory-Chennai, M&M, Tata Motors, BHEL, Crompton Greaves, Kirloskar, Thyssen Krupp, Ford Motor among others.
Schuler Group has identified machine tool makers in Kolkata and Ghaziabad among others to supply components. The group has tested the products from these companies and analysed their quality standards as per the DIN standard of Germany and found them suitable for sourcing, he said.
“The purpose of increasing sourcing of components from India is beneficial to us in two ways. Firstly, it will help us understand what kind of components we can get from Indian manufacturers for our global operations. Going forward, it will help us set up our own manufacturing unit here for which we may have to source components,” Ernst told Business Standard.
He said the company was discussing seriously with many vendors for increasing the level of sourcing this year.
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In addition to sourcing, the group is also in talks with several original equipment manufacturers (OEMs) in the automotive segment for the supply of various products. “We are in talks with Tata Motors for the supply of high speed press line for its Sanand facility in Gujarat where it produces the Nano car,” DM Thaker, managing director, Schuler India Pvt Ltd, said.
The company recently supplied the same machine to Mahindra & Mahindra, which it uses to produce body parts for its latest utility vehicle — the XUV 500. This machine churns out 30 doorframes per minute.
It is also in talks with the Indian Railways for supply of complete product line for the manufacture of rail wheels. The size of the order is likely to be around Euro 30 million. “We are in talks with the Railway Board for this product. Once they place the order, it will take us 24 months to deliver,” he said.
Schuler is looking at a turnover of Euro 100 million in the next two years from its Indian operations.