Component maker Makino Automotive is targeting an up to three-fold increase in its aftermarket business over the next five years through both organic and inorganic growth, a senior executive has said.
The Uttarakhand-based firm makes automotive clutches and brakes for two, three and four-wheelers.
"From the aftermarket standpoint, we want to double or triple our business in the next five years. We are opening ourselves to the global players to partner with us," Makino Automotive chief executive officer Faisal Matin told PTI.
Makino is looking at growing business and increasing market share in the OEM, with more focus on the aftermarket segment, he said.
The fast growing domestic two-wheeler aftermarket, which is estimated to be around Rs 700-800 crore at present, is growing at 10-15 per cent annually, according to industry estimates.
"I think the two-wheeler market has been growing consistently beyond 12-14 per cent this year. Going forward, it's going to grow at the same pace, or more," he said.
The USD 75-million company recently partnered with R K Tagasako, an OEM supplier to auto majors such as Honda, Kawasaki, Yamaha, Suzuki, KTM and Triumph.
Matin said the industry has added close to 20 million bikes in the last five years and this is the kind of opportunity which the two partners want to cash on.
As part of the tie-up, Makino Automotive will leverage on RK Takasago's expertise in technology to provide services to the two-wheeler automotive aftermarket segment in India.
The two partners have launched a motorcycle chain last week in Malaysia for the domestic market.
"At present, the Indian market is almost equal to the rest of the world, and hence we aim to capture a share in this sizeable market. The business in the Indian market can easily help our group grow by around 20 per cent," said Lee Thian Chai, managing director, RK South Asia.
Matin said Makino will look at similar partnerships to expand its network and base.
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