Kalyani Brakes Pens 2-Pronged Global Gambit

Kalyani Brakes has devised a two-pronged strategy to position itself as a global supplier of automotive braking systems through alliances with its international equity and technology partners, and acquisition of a manufacturing facility in the US.

The new strategy is expected to offset the slump in business caused due to the recession in the domestic passenger car market where Kalyani Brakes is a major supplier of braking systems.

"Only those automotive component manufacturers which have a global presence will survive in the long run as car platforms get globalised. So we have decided to position ourselves in the global arena," said Baba Kalyani, chairman of Kalyani Brakes.

Currently, the US-based Bosch, Nippon Air Brakes Company (Nabco) of Japan and the Kalyani group each hold a 26.66 per cent equity stake in Kalyani Brakes, while 20 per cent equity is held by the public and institutions.

Kalyani Brakes is currently implementing two major brake components export contracts. Under the first contract, the company will export front disc brakes for General Motor's Sedan car for Rs 6 crore per annum. The contract is being executed through Bosch.

The second contract, which is valued at Rs 3 crore, is from Titan. The strategy of targeting at the global market is expected to see exports to the tune of Rs 15 crore per annum over the next two years, while the company eyes Rs 30 crore worth exports in five years.

"Kalyani Brakes has a unique distinction of having tie-ups with global majors such as Bosch, Nabco, Brembo, Titan and JBI which are all leaders in their respective fields. The company's export strategy is to become a long-term reliable source of braking products to its alliance partners. The export programme to the US has just gone into a series of production, while another one to Japan is currently being negotiated," Kalyani said.

The company is also emphasising on research, development and quality. It has already acquired various testing and validation equipments.

Twenty engineers of Kalyani Brakes are currently undergoing training at Bosch's facility in the US which is expected to help achieve the ambitious global gameplan of the company.