Brakes India Ltd. is eyeing a total turnover of ₹10,000 crore in the next couple of years by increasing its overseas market share, expanding global footprint and introducing new products, said MD Sriram Viji.
“Last year, we posted a consolidated turnover of ₹6,900 crore, of which exports accounted for ₹1,500 crore. We are hopeful of posting 10-14% growth during the current fiscal,” he said during an interaction.
Asserting that their ambitious plan depends on the domestic market performance, he said that if the economic growth rate is good then we can achieve the numbers much before the anticipated date.
Currently, the manufacturer and supplier of braking systems for light, heavy and commercial vehicles, has an export market share of 22% and the company wants to grow to over 30% in five years.
“Majority of our exports are from our foundry division. The foundry has a total capacity of 180,000 tons. We are working on future capex to enhance the capacity further. We will be one of the largest exporters of iron castings from India. Already, we have strong base with majority of exports going to Europe,” he said.
Talking about the future outlook, he said domestic markets growth will be there. However, the company foresaw lot of opportunities in the export markets both for existing iron castings and new products such as passenger vehicles or commercial vehicles braking.
In the last 12-18 months, Brakes India has strengthened its presence globally by setting up a legal entity in Germany, recruiting team members in Korea and sales people for North America. Besides, plans are on to set up branch office in Japan during this fiscal. Unlike other players, Brakes India will develop products for the Internal combustion engine (ICE) vehicles as well as for electric vehicles (EV).
“From a product perspective, we do full braking systems. It does not significantly change for EV or ICE. From that perspective, we have some products improvements happened in EV. We are working on specific products required for EV. We are working on several leading EV selling platforms in India,” he said.
“Based on the product portfolio we have and cost we were able to achieve out of India, it is very good opportunity to look at global OEMs or suppliers for existing product portfolio,” he said.
While feeling bullish about the domestic market conditions, he said it was due to two factors -- the strong push given by the Centre to infrastructure projects and many MNCs have quite strong exposure in India either on their own or through international purchase organisations.
“We see much more active participations from OEMs looking to source from India for international markets. That gives the confidence while we will grow with the Indian market, export is a higher growth potential in the medium term,” he said. According to him, the company is also planning to introduce electric boosters for EV. Prototype is ready and production will start in two three years.