Japanese component maker Denso is investing around Rs 400 crore in India on a new plant in Haryana and a new R&D centre.
To start by 2013, its Rs 300-crore fifth new manufacturing plant near Gurgaon, will make motors for wipers and power windows and supply to carmakers such as Maruti Suzuki, Honda, Toyota and Hyundai.
Meanwhile, it has invested Rs 150 crore in a technical centre that starts operations by March.
“Our strategy for the Group is R&D expansion and growing our business in emerging markets. That we think is the key to success in the future. Denso spends over nine per cent on R&D,” Mr Yasushi Nei, Chairman & CFO, Denso International India, told
The company, which currently supplies to two-wheelers and passenger cars, is expanding to the commercial vehicle segment. It is planning a new product range with engine management systems for petrol cars, in preparation for Bharat Stage V cars. It is also planning to make airbag control units and software for global needs locally.
“We've successfully developed a new technology in India where we are sharing the same components across products like radiator and condensers. We are taking this to other markets,” said Mr K.K. Viswanathan, Vice-President, Denso International India.
Denso came into India in 1984 with Suzuki (Maruti Suzuki). Currently, it has six Group companies, two joint ventures to Subros and Pricol, apart from a technical assistance tie-up with Lucas-TVS. It makes various products ranging from motors, vehicles radiators/air-conditioners and engine management systems. India accounts for 10 per cent of the Asian revenues of the $38-billion company.