The plant was inaugurated at MM Nagar, near Chennai, in March 1990, fifteen months from the date of signing the JV. This state-of-the art plant was established to produce 1,00,000 carburettors and since July 1993 has been manufacturing carburettors for two-wheelers and fuel pumps. Today, it manufacturers twenty different types of carburettors and is the only one in the country making twin barrel down draught carburettors. UFSL is the sole OE supplier of carburettors for Maruti vehicles except Omni and Gypsy.
With MUL planning a massive expansion programme, it was imperative that UFSL plan future production facilities. Extensive discussions with MUL and Mikuni resulted in the selection of Pondicherry as the location for the new plant. Built at a cost of Rs.10.5 crore, it started production within eight months from the commencement of construction. Employing around 125 personnel, the plant has been able to achieve over 80 per cent capacity utilisation.
The four wheeler carburettor business is expected to be steady with MUL and new customers such as Fiat, Uno and Telco working closely with UFSL. It is also working closely with Mikuni, Suzuki and MUL to meet all future emission norms.
UFSL started exports of four wheeler carburettors in May 96. By the year-ending March 97 as many as 26,065 carburettors worth a value Rs.5.15 crore have been exported, constituting 10 per cent of the companys production. During the course of 1997-98, the percentage of buy-back carburettors by Mikuni could go up to 20 per cent.
UFSL is targeting India as its base for production of four wheeler carburettors for Mikunis worldwide requirements, currently handled from Japan.
Mikuni has already started using UFSLs facilities to support new projects coming up for Suzuki, for cards fitted with Mikuni carburettors in countries outside India. Sample carburettors have been submitted to projects in Indonesia and China. UFSL is also the sole OE supplier to TVS Suzuki for their motorcycles and has been manufacturing carburettors for Bajaj three-wheelers since December 1996.
UFSL is working on an additional investment of Rs 25 crore for expanding the two wheeler/three wheeler carburettor manufacturing facility. This could also mean additional investment in technology for hi-tech carburettors for stricter control of emissions in the two/three wheeler segment in the future. The first phase of operation will be establishing a capacity of an additional one million carburettors per year.
With the support of Mikuni, UFSL is getting into fuel injection related products for the passenger car industry. It has received the letter of intent from Hyundai Motor India Limited (HMIL), Chennai, for the throttle body assembly. Mikuni has taken steps to transfer technology for this new area so that the product can be made available by February 98. The company will be ready to meet similar requirements for all other players in India.
UFSL is about to finalise with HMIL an assembly consisting of fuel rail and pressure regulator. These will also be manufactured with support from Mikuni. UFSL has tied up for the transfer of technology for in-tank electric fuel pump with Mitsubishi Electric Corporation (MELCO), Japan. Sample pumps are under test for Zen and development work is under progress for Esteem. UFSL is expected to go into commercial production of this product during the second half of this year.
UFSL has a letter of intent from Maruti for oil pumps for Maruti cars. Commercial production is expected to commence during the last part of this year and operations will be established in the Pondicherry plant as a base for start of production of oil pumps for the automotive industry in the future. It is also working on carbon canister for automobile application with Mikunis support as a part of UFSLs overall strategy of involvement in a green environment. UFSL has entered into a JV agreement with Engelhard Corporation for coating catalysts.
