Emitec, a Germany-based automotive component manufacturer, is embarking on a new business strategy with a focus on rapidly expanding segments such as light and heavy commercial vehicles (LCVs and HCVs), tractors, and generator sets. Despite its current dominant position in the two-wheeler segment, which constitutes around 60% of its market share, Emitec sees substantial growth potential in other sectors.
Rolf Bruck, the company’s Managing Director, highlighted that a significant order from an Indian commercial vehicle manufacturer has recently been received. Emitec envisions India playing a pivotal role in its growth strategy, as about one-third of its revenue already originates from the country. The company’s global operations have generated approximately $160 million in annual revenue.
Emitec plans to invest aggressively in new product launches, capacity expansion, and research and development (R&D). Collaborations and partnerships with other firms will also be explored if they align with its expansion goals. The company is considering India as a potential export hub for its new products, including electrically heated catalysts and closed coupled compact catalysts, which are in high demand globally.
In the context of global supply chain diversification away from China, India’s burgeoning auto clusters make it an appealing sourcing option. Emitec’s decision to focus on the internal combustion engine (ICE) segment rather than exclusively on electric vehicles (EVs) sets it apart from the trend in the automotive industry. The company believes there is still a significant market for ICE vehicles in India, and it aims to contribute to emissions reduction from these vehicles.
KVR Babu, Managing Director of Emitec’s India operations, highlighted that the company is now owned by Lenbach Equity Opportunities II. GmbH & Co. KG (LEO II Fund) and managed by the DUBAG Group, providing it with greater independence and agility in developing new substrate technologies while expanding its global market and customer base.
Although the financial details weren’t shared, data from the Ministry of Corporate Affairs suggests that Vitesco Technologies, which owns Emitec, recorded a net profit of INR 90 crore and revenue of over INR 1332 crore for the year ending March 2022. Emitec operates production plants in Lohmar and Eisenach in Germany and Talegaon, Pune, in India, catering to a global customer base that includes renowned Indian manufacturers like Mahindra & Mahindra, Hero MotoCorp, Bajaj Auto, TVS Motor Co., Royal Enfield, Honda Scooter & Motorcycle India, and Suzuki Motorcycle India.
|Read More: Click Here|