Leading camshafts maker Precision Camshafts today said it has partnered with EMAG of Germany to introduce assembled camshafts technology in the country.
The Solapur-based automotive component maker is also looking at acquiring a company in Europe as part of its growth strategy plan, Precision Camshafts Ltd (PCL) Chairman and Managing Director Yatin Shah told reporters here.
"PCL, through the acquisition of this technology will be a complete solution provider for camshafts manufactured by different technologies," Shah said here.
"The collaboration will mutually benefit both entities in the long run. Using PCL's technological prowess and best practices in the manufacturing process, our products and technology will not only help meet the new demands of our global customers but our synergies will be leveraged from time to time to meet the growing demands of the automotive industry in the future," EMAG Managing Director Andreas Mootz said.
EMAG specialises in the entire spectrum of the machining process and in vertical turning centres for all machining needs.
Assembled camshafts are used predominately by Original Equipment Makers (OEMs) in Europe and now China and some developed countries, have increased strength of material and are lighter in comparison to conventional camshafts, which help in improving fuel efficiency and reducing emission.
PCL manufactures around 150 varieties of camshafts for the small and mid-sized passenger vehicle engines between 1 litre and 2 litre segment world over to cater to both domestic and global car makers like GM, Ford, Porsche, Fiat, Tata Motots, Maruti Suzuki, Toyota with a small chunk of business coming in from Indian Railways as well, he said.
Following this tie-up, PCL will become a one-stop solution provider for chilled cast iron, ductile iron induction hardened and assembled camshafts for mid-size passenger cars, he said.
The company at present produces 13.5 million of camshafts annually for OEMs and it aims to raise this capacity to 30 million by 2017, including one million of assembled camshafts and 10-millions of ductile iron camshafts at an investment of Rs 300-crore.
"Of this, Rs 150 crore investment is required for producing assembled camshafts, which will be ready for supply in the next 14 months," Shah said, adding, PCL will also plan to develop next generation camshafts which will be required by OEMs in FY 2020.
Last year, PCL had signed a JV with Shenglong Automotive Power train Co of Ningbo and ZMM Technologies, to set up a foundary for manufacturing four million camshaft castings per annum at Huzhou in China, which will be up and functional next year, he said.
"There are going to be limitations for organic growth. We are not going to see greenfield project there. So one of the things we see in terms of growing is to acquire a company in Europe. We don't know where but we are exploring all opportunities," he said on acquisition.
