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Abhrajit Gangopadhyay
V.K. Varadarajan

BANGALORE, March 26

AUTOMOTIVE components major Mico Ltd, which is betting big on its new business streams, expects exports and non-automotive business to contribute close to 30 per cent to the company's revenues by end-December 2005, the Managing Director, Mr Andreas Nobis, said.

Currently, the company derives close to 93 per cent of its revenue from automotive segment and exports contribute closely to 10 per cent. Exports itself is likely to grow to 20 per cent of the turnover by end 2005.

Mico, which bought out business communication products and closed circuit television unit, would introduce newer products in the security and imaging business segment. "We expect this business to grow two-three times in two-three years", Mr Nobis said.

Securities systems market in India is poised for a big growth, as corporates and individuals get increasingly conscious of security issues, according to Mr Nobis.

Meanwhile, Mico plans to focus on offering research and development efforts to its parent Bosch. According to initial estimates, outsourcing R&D efforts to Mico could save as much as 75 per cent of cost undertaken for similar engagements in Germany . Initially research on diesel systems are likely to be carried in Bangalore and "after that perhaps we could get into basic research", headded. Substantial workflow could start trickling in after 2004, when local engineers are likely to have substantial expertise to handle research on project basis, he added. Mico, which is upbeat on its current year's sales forecast tracking a surge in auto sales, expects to top " the rate at which the market grows".

However, the slack sales in the tractor segment would continue to be a point of pain for the company. Mico also plans to increase its exposure to the passenger car segment in a marked shift from its tradition of servicing the commercial vehicles segment, going forward.

Moreover, the company plans to bring in new lines from Germany to its facility in Jaipur to step up production when Euro II norms become mandatory in 2005. Postponement of Euro II hindered Mico's expansion plans earlier and the once-under-utilised capacity in Jaipur is currently used to service exports.

"We can get relatively new machines from Bosch's factories and expand lines in our facilities at a cheaper rate than going for fresh investments for the Euro II systems", Mr Nobis said.

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