Kusalava eyes 30% growth in turnover

Kusalava International Limited, the largest cylinder liner manufacturer in the country, is targeting a growth of 20-30 per cent in its turnover during the year 2004-05.

Last fiscal, it achieved 31.25 per cent growth in turnover at Rs 42 crore inclusive of Rs 10 crore exports. It registered a turnover Rs 32 crore, inclusive of Rs 8 crore exports, in 2002-03.

Kusalava is the first company from the city to have global operations. It opened 24 factory warehouses during the last four years in the US for supply of its 'Tiger Power' brand liners and other auto parts to its customers in the US and Canada.

Prasad R K Chukkapalli, managing director of Kusalava International, told Business Standard that the firm has adopted the German foundry technology and manufactures around 2.5 lakh Tiger Power brand liners per month. It entered the domestic market three decades ago and commenced exports in 1991.

He said that Kusalava had developed indigenously technology for manufacturing engineering products like huge pipes for ash disposal in thermal power stations, sugar crushers and motor frames for heavy electrical motors. The company on its own developed an enterprise resource planning (ERP) system integrating manufacturing and distribution lines.

In the US, the company's central warehouse is located in Houston. All the warehouses have been taken on lease. Finding the global market lucrative, the company opened warehouses to make fast supplies to customers and to check high freight costs in delivering individual export orders.

The company transports products in two or three containers for replenishing the stock at these warehouses every month.

The American customers include Copeland Corporation, Mac Trucks, Uniboring, IPD Inc, and Carrier Corporation. Other prominent foreign customers are Kaydon Rings and Seals Inc. and Ertel Manufacturing in Canada, L'Elettro Metallurgica Spa in Italy and Dana in Europe. Tiger Power is the second most preferred brand in the US, Chukkapalli claimed.

The company's domestic clientele are Ashok Leyland, Telco India, Eicher Motors, Bajaj Tempo, Swaraj Mazda, Mahindra & Mahindra and VST Tillers Tractors. The warehouses located at Chennai, Cuttack, Nagpur, Rajkot and Ghaziabad take care of supplies all over the country.

Chukkapalli said: "Big global engine distributors such as EPW, IEPG, Sony Racing and JRCE use Tiger Power parts. Kusalava also supplies auto parts to Ford-certified re-builders such as Aer Manufacturing Inc, Seminole Sales, Franklin Engine & Parts Inc and Tomadur Engine Company. As part of its new thrust, the company has bagged bulk outsourcing contracts from domestic and foreign companies for manufacture of Tiger Power brand piston assemblies, valve guides and gaskets."