Delphi-TVS Technologies JV to take up capex worth 450 cr at Chennai plant

Delphi-TVS Technologies, a joint venture between diversified conglomerate TVS Group and auto-component major BorgWarner, has lined up investments worth about Rs 450 crore over the next 3 years

Delphi-TVS Technologies, a joint venture between diversified conglomerate TVS Group and auto-component major BorgWarner, has lined up investments worth about Rs 450 crore over the next three years to take up capital expansion plan at its manufacturing facility here.

Delphi-TVS Technologies, which commenced production of common rail system in 2009 has reached milestone production of over three million common rail systems at its manufacturing facility in Oragadam, about 45 kms from here. "We continue to expand the production capacity in common rail systems at the plant. We expect to invest about Rs 150 crore every year over the next two-three years..." Delphi Technologies President A Viswanathan told reporters. The company caters to all sections of the diesel engine market including passenger cars, commercial vehicles, tractors, construction equipment and industrial engines.

With the proposed investment plans, the company would be scaling up the production to a million units from the present six lakh units a year, he said.

"We will be growing more than the industry growth in the coming years..." he said in response to a query. Delphi-TVS reported a turn over of Rs 1,800 crore last financial year of which 15 per cent constitute exports. "Exports will be around 15 per cent of the total revenue," Viswanathan said.

Delphi-TVS serves domestic market with 357 aftermarket service network and it would be increased by 20 per cent over the next two-three years under the expansion plan, he said.