We recently sat down with the global CEO of Magneti Marelli, Mr Eugenio Razelli, to discuss the future of the Italian component manufacturer in India. The component manufacturer, which is part of Italian car maker Fiat SpA, has had a great year of growth in the country and is aiming to double its revenues and ssell over 2 million AMT units anually.
Apart from that the manufacturer has also tied up with the world's largest motorcycle manufacturer, Hero MotoCorp, and has inaugurated its first autonomous ‘Production and Development Centre’ at Manesar in the north Indian state of Haryana. The new centre will serve as a production facility and innovation hub to develop new-generation fuelling systems for HMCL two-wheelers. HMCL holds a majority stake of 60 percent in “HMC-MM Auto Ltd” while Magneti Marelli holds the rest 40 percent. This JV will help build Electronic Fuel Injection systems that will offer distinct advantages to the engines used in Hero’s two-wheelers such as adaptability to different working climates, altitudes, improved performance and fuel efficiency, environmental regulations and gasoline blends. Additional functionality such as Immobilisers, traction and slip control, multi map, flexi fuel and multi fuel management etc. will also be available with the above technology.
Mr. Eugenio Razelli, said, “For Magneti Marelli the partnership with Hero in India is crucial: together we have the possibility of bringing a technical revolution in one of the most important two-wheelers market in the world, aiming at a better mobility, great market results and matching innovation, quality and affordability.
To further expand its operations in India, Magneti Marelli is also setting up a new plant for lighting at Sanand in Gujarat to meet the requirements of its customers – mainly Maruti Suzuki and Ford. This new plant will have a production capacity of 500,000 units.
Maneto Marelli already manufacturers AMT units for Maruti Suzuki's Celerio, but they also plan to localize production and are setting up another plant in Manesar. Mr Razelli said, "To be competitive you have to localize, and that is the first step. We are investing a total of 20 million Euros for our new AMT plant, which will develop the fourth generation AMT units. We also expect to double our revenue by 2018 to about Rs 3,000 crores."
The company is spending Rs 750 crores on all its new plants and hopes to sell about 200,000 AMT units globally. The new facility in Gujarat will be the manufacturers 12th plant in the country and they also plan to add a shock-absorber manufacturing plant as well as a suspension module plant.
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