By R.Natarajan, Managing Editor & Publisher
Tenneco is a well-known brand in the automotive world, manufacturing clean air products as well as ride performance products, both of which have established brand awareness among OEMs and the aftermarket.
Recently we had an opportunity to visit Tenneco’s world-class facility at Chakan in Pune. The following are excerpts from our exclusive interaction with Mr. Sagar Hemade, Managing Director, Tenneco India.
MOTORINDIA: Globally, India is indeed a shining star in terms of its economic growth. What are your views from an investor standpoint?
Sagar Hemade: India’s GDP as per the latest estimates touched 7% in 2016-17 despite demonetization and expected to move upto 7.5 per cent and 7.7 per cent in FY17 and F18. Further, the proposed GST implementation by July 1, 2017, good monsoon forecast by IMD, political stability, currency appreciation, lower inflation and interest rates, etc., all economic parameters are indicating a very buoyant economy ahead. The auto industry is also expected to grow at a minimum 7-9% CAGR in the next few years.
All these economic and industry indicators giving us lot of confidence in the Indian market, and we are very optimistic about the potential of India as a major automotive growth market.
MI: Please highlight the significance of Tenneco India’s contribution to the overall global performance of the company.
Sagar: India has been instrumental in starting business with some global OEMs in India, first for Tenneco and also launching some affordable and high performance products developed in India and used first in the Indian market and than carried over to other regions. Also, India has been instrumental in supporting various global projects based out of India due to technical competence and talent available with us.
MI: What are the key targets set this year for the two divisions of Tenneco?
Sagar: For our clean air business this is a very critical year as we are preparing various BS-IV and Tier-IV launches we are doing for many CTOH OEMs this year due to regulations in BS-IV and export requirements of some of our OH customers.
Also, this year is critical in terms of securing BS-VI projects with various LV and CV customers in India, and we had already made good preparation in terms of finalizing technology and engineering support for our customers by setting up a new technology center and by adding new talent in our clean air drive in various functions. We are also planning investments for BS-VI growth.
For our Ride Performance business we are very strong in the LV segment. We are further consolidating our position by providing fit to market technology, state-of-the-art manufacturing support and cost leadership. We have recently added new OEMs and entered new segments to further enhance our market share. Also, on CVS we have done lot of work in developing new products thus meeting customer expectations on cost and durability. We also believe we are well positioned to further improve our market share.
Another key focus area for us in Ride Performance is the Aftermarket. We had been growing faster than market and gaining market share in the past few years and positioning for growth in the next 3-5 years with a strategy and resource plan in place.
MI: Today the world stands on the cusp of an environmental nightmare. Being a responsible manufacturer of auto components, how does Tenneco address these environmental issues?
Sagar: Clean Air – Tenneco has been developing Clean Air solutions in the past several decades to address issues of environment change. In fact, we have technologies that can clean and treat exhaust gas emissions to such an extent that in some cases the exhaust exiting from tailpipe can be cleaner than the ambient air in some cities.
Ride performance – We are planning various measures in our design and process for same:
– Nitrosamine free oil seals
– Elimination of conventional spray paint & powder coating and move to autophoratic coating
– Lightweight products – Lean damper designs, high strength tubes with less thickness, hollow rods, integrated sensor & stabilizer brackets, mono knuckle bracket
Others for info.
– Zero chrome discharge in chrome plating process at the Hosur plant
– 100% wind power at the Hosur plant
MI: The BS-IV introduction has brought about dramatic changes in the Indian automotive sector. What is Tenneco’s contribution and alignment towards BS-IV?
Sagar: Tenneco has been able to provide technologies and proven solutions to address both routes (EGR route: DOC + POC & SCR route: UDS + Mixer + SCR) used for BS-IV. We have been in serial production with both technologies and are happy to be a part of and continue supporting the needs of the Indian automotive sector.
MI: Tenneco maintains a long-standing relationship with many OEMs globally. What are your innovative strategies to retain sustainable and profitable business from the Indian OEMs?
Sagar: On Ride Performance side being a system supplier we are offering solution for full Strut Assy including modular parts designed and developed by Tenneco which customers used to do in their own. So, now we are offering them a full system solution helping us increase our scope of work and at the same time providing smart cost-effective one-stop solution to customers.
Also, we are in the process of introducing to our customers high-tech products like frequency dependent dampers for enhanced ride & handling, dual mode dampers to driver’s choice (sports & comfort modes) & continuously controlled electronic suspension for dynamic change in damper performance according to road conditions.
We also provide best NVH solutions with objective measurements.
On Clean Air we are among a few suppliers having the capability to give full integrated exhaust after-treatment solution to the customer. Also due to local engineering capability we have been able to offer OEMs unique, affordable, fit to market solutions, and many of them are already in production for BS-IV.
MI: India has been considered a major knowledge hub, and most globally-renowned auto component manufacturers use the vast talent available in the country. What are Tenneco’s key initiatives to utilize India’s full potential and talent?
Sagar: – Our global technical center at Tenneco India performs certain engineering tasks for the US and Europe.
– The Tenneco India team is currently leading certain global programs for Tenneco.
– Tenneco India has on various occasions deputed talented engineers to other engineering centers in NA, the EU and Japan for support on various technical issues and manufacturing support.