WITH the domestic market for heavy duty trailer trucks expected to grow substantially, York Transport Equipment (Asia) Pvt Ltd, the regional leader in highload axle, air suspension and trailer undergear manufacturing, plans to set up a manufacturing plant in India. The Singaporebased company is expected to invest over Rs 300 crore in the project.
"The Indian high-load trailer market is estimated at around 20,000 units per year and is expected to grow at a compounded annual growth rate of around 30-35 per cent for the next five years," P V Balasubramaniam, Director and Chief Executive Officer (CEO), York Group told Financial Chronicle. As a result, having a manufacturing plant in India was necessary for the company, he said.
At present, York, which is now owned by the Tata group, has an assembly facility at Jamshedpur that assembles high-end trailer axles for container trucks and trailers with capacity to produce 24,000 axles per year. Components are imported from the Singapore manufacturing plant and assembled here to supply to customers. " Our new plant will have the capacity to produce 1,00,000 highload axles per year," Balasubramaniam said.
The company is looking for 5-6 acres of land, so that it can house high load trailer axles manufacturing, assembly, testing, research and development and training facilities. The plant is expected to come up over the next two to three years in keeping with market demand.
As soon as the green field facility becomes operational, York plans to shift the production of `12 tonne standard axles' that are priced around Rs 40,000 per unit from Singapore to India. "The cost of manufacturing in India is around 15-20 per cent lower than Singapore," he said.
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