Wabco-TVS (India) Ltd, a manufacture of air-assisted and air brake systems for commercial vehicles, plans to go for a capital expenditure of Rs 60 crore in 2011-12. The company is also planning to set up a greenfield facility in Uttar Pradesh.
The capital expenditure is planned considering the industry growth this year, the company said in its annual report. As part of expansion, it would set up a plant near Lucknow in 2012-13.
At present, the company has a unit at Mahindra World City special economic zone near Chennai and caters to the needs of Wabco plants globally.
As part of its future plan of action, the company is planning to develop and launch lift axle control system for the Indian market. It would also design and develop hydraulic brake booster and park brake module and series production of valve devices for north American OEMs and value engineered foot brake valve with integrated switch for Indian customers.
In 2010-11, the company has reported a turnover of Rs 899 crore as against Rs 609 crore the previous year, an increase of 47 per cent. The growth in turnover is due to improved economy resulted in growth in CV industry.
It was the first full year of operations of the company after the raising of ownership position to 75 per cent by Wabco Holdings Inc. of USA through its indirectly owned subsidiary Clayton Dewandre Holdings Ltd.
To change name to Wabco India Ltd
The company is planning to change the name to Wabco India Ltd, after its joint venture partner TVS group exited from the venture in 2009.
In terms of the scheme of demerger approved by the Madras High Court and following the acquisition of 35.83 per cent of the company shares by Clayton Dewandre Holdings, a name and trademark licence agreement was entered into with Sundaram-Clayton Limited (SCL).
Pursuant to this, SCL has granted Wabco-TVS (India) Ltd a non-exclusive licence to use the trademark 'TVS' in its corporate name and as a trademark and logo in connection with the promotion, sales, marketing and distribution of its products for three years, ie, up to June 2, 2012.
The company and SCL have however mutually agreed in writing to the change of corporate name by omitting 'TVS.' They also agreed to use the trademark 'TVS' on products sold prior to the change of name.
