Tenneco Automotive India, the 100 per cent subsidiary of $4.5 billion Tenneco Inc, USA would invest around $20 million over the next two-three years as part of their expansion plans, a top company official said today.
The investments by the company was aimed at establishing a strong foothold in the domestic auto industry, which according to Tenneco Inc Chairman and Chief Executive Officer Gregg M Sherrill was having "a huge" growth potential.
"We intend to make investments of approximately $20 million in India in the next two-three years...We may expand our existing facilities and may also set up another facility if required..," Sherrill told reporters here.
Since its entry into India in 1995, Tenneco has set up six facilities to manufacture emission control and ride control products for automobiles.
With Chennai becoming the automobile hub of South India, having the presence of several companies including Hyundai, Ford and Daimler, Tenneco yesterday set up its seventh manufacturing facility in Oragadam about 45 kms from here.
With the setting up of the new unit spread across 2,600 square metres, the company would begin producing exhaust systems for Japanese automaker Nissan's compact car Micra initially, he said.
"This we may increase to expand it to all the Nissan products in India after some time..", Tenneco Automotive India Managing Director Abhijit Mukherjee said.
The Chennai Plant would also be supplying modular assembled struts and shock absorbers to Ford. Initially, the plant would employ about 60 people, he said.
The six other manufacturing facilities in India were serving Tata Motors, Mahindra and Mahindra, Maruti Suzuki, Renault-Nissan, Ford India, Volkswagen, TVS Motor Company, Toyota Kirloskar Motor and General Motors, he said.
On the proposed $20 million investment, he said they have already began focussing on commercial vehicle industry, which was witnessing a decent growth. The investments would help the company ramp up its plant capacity.
"We already serve some of commercial vehicle manufacturers and already cater to various global companies, including Caterpillar, John Deere, Navistar...", he said.
"Globally our revenues from the commercial vehicle business was around seven per cent and we want to increase it to 20-25 per cent", he said.
According to company officials, Tenneco Inc reported revenues of $4.6 billion in 2009. The company has more than 80 manufacturing facilities in six continents and employs around 21,000 people worldwide.