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The $2.9 billion company is the global leader in commercial vehicle braking, stability, suspension & transmission control systems that improve vehicle safety and operating costs. With the new regulations coming into force in the coming months the company is gearing up with these next generation products based on these technologies.
Jacques Esculier, WABCO's Global Chairman and CEO said that India is playing pivotal role for WABCO globally and it works with European operations to design and build not only cost effective products but advanced technologies for both domestic and global products. When it comes to safety content per vehicle, India is far ahead of China, he noted and it will further boost operations here.
"No product or system are developed by WABCO globally, without Chennai's participation and reviewed by Indian engineers," said Escluier, who was in Chennai to inaugurate company's new software engineering business services centre which will accommodate around 250 engineers and will be increased to 500 in the next five years.
Today 60 per cent of WABCO's software development is happening in India, which is a strong pillar for the global company which not only focuses on safety and efficiency but also cost, unlike European engineers who focus only on technology. The Indian arm -- WABCO India -- clocked in around Rs 1,368 core in 2014-15 has around 30 per cent of WABCO's global employees and expects to grow more than market, said P Kaniappan, vice president, WABCO India.
He said the company would invest around Rs 60 crore every year to develop new products, which help the fleet owners to meet the regulations of the Indian Government's new regulations. For instance, today only eight per cent of the commercial vehicles are fitted with ABS and this is expected to grow to 70 per cent, which opens a good opportunity for WABCO.
Another example, one of the mandates in Jawaharlal Nehru National Urban Renewal Mission (JnNURM) scheme is the vehicles should have AMT, which offers fuel saving. Company's AMT products are being tested at Kolkata buses. To be cost competitive the company is planning to increase the localisaton to 70 per cent (on AMT products) by 2017 from the current 30 per cent, said Kaniappan.
On exports, he said, of the total turnover last year the company clocked Rs 430 crore worth of export business and hopes to increase it as the demand for Indian products in other markets is growing. The company has dedicated facility to cater export markets near Chennai. The company has one more facility at Lucknow.
WABCO, which had a tie up with the TVS Group in India, has agreed to part ways with the latter in 2009. Following this, Wabco took over the stake of Wabco-TVS from TVS Group thus becoming the promoter of the company, whereas it sold its stake in Sundaram Clayton Ltd (SCL) to the latter, giving the control of SCL to TVS Group.
