Delphi-TVS Technologies, a manufacturer of fuel injection systems for passenger and commercial vehicles, proposes to invest ₹150 crore annually over the next three years in capacity expansion as the company prepares to meet the future demand in the tractor market and other new product segments.
The Chennai-headquartered company is a joint venture between US-based BorgWarner Inc (erstwhile Delphi Technologies) and TV Sundaram Iyengar & Sons (TVS Group).
The company expects higher demand to come for common rail systems in the tractor segment as a result of new emission norms. Also, it doesn’t see diesel systems going away in the near future amid the emergence of alternative fuel options.
Space for more
“We continue to expand the capacity in common rail at the Oragadam plant as we have space for further expansion. We expect to invest about ₹150 crore a year over the next three years,” A Viswanathan, President, Delphi-TVS Technologies Ltd, said while announcing the milestone of producing three million common rail systems from their factory.
Its Oragadam facility, which started producing common rail systems in 2009, is one of the sites globally to make common rail pumps, injectors, rails and filters under one roof. Four out of 10 diesel vehicles made in India use Delphi-TVS systems.
With the proposed expansion plans, the company’s production capacity for common rail systems will reach a million units a year from about 5 lakh units now, T K Balaji, Chairman & Managing Director, Delphi-Technologies, said adding, “This segment is highly-capital and technology-intensive one and hence there are only three major players globally — Bosch, BorgWarner and Denso.”
New norms
While Bharat Trem IV norms, which kicked in from January 2023, is applicable for tractor with engines bigger than 50 HP, the Bharat Trem V norm, which is expected to come into effect from April 2024 (although the date is yet to be finalised), will cover most of the HP categories. As a result, tractors have to move to a common rail system from the mechanical system. Thus, there will be a demand surge for common rail products.
“Earlier, companies were taking a product available in Europe. But we have developed a product exclusively for the Indian Trem V requirements — unit pump system for tractor applications,” said B Viswanath, Chief Technology Officer of the company.
The company has a tech centre at its mother plant at Mannur near Chennai. It has been developing products and applications to meet new emission standards (such as BS6 and Trem 5). Employing about 200 people, the facility has hi-tech test facilities and other to take up complete development activities.
In FY23, the company posted a revenue of about ₹1,800 crore; exports account for 15 per cent of the revenue.