After achieving a strong growth over the past three years of ups and downs

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in the market place, Fenner (India), the country’s leading manufacturer and exporter of industrial and automotive v-belts, oil seals and power transmission systems, seeks to sustain a 30 per cent CAGR (compounded annual growth rate) in the coming years and intends to invest about Rs 300 crore in the next 3-4 years to support the growth plans.

“In the last three years, we were able to record a CAGR of about 25 per cent. This is a very significant achievement considering the market situations during this period. Our growth was led by automotive and exports businesses, both of which registered a growth of 35-40 per cent over these years. Fenner has become a much stronger brand in the country now,” said AN Ravichandran, president and director, Fenner (India).

“The proposed investments of Rs 300 crore would be made in capacity expansion, R&D and testing capabilities in the next three years. We are financially a strong company and the expansion will be funded through internal accruals and some debt,” said Krishnan Raman, VP – finance, Fenner India.

The past three years saw the company strengthening its manufacturing, product and technological capabilities through setting up of state-of-the-art factories, establishment of partnerships with global firms, backed by in house R&D competence. The Rs 414-crore company invested about Rs 120 crore in expansion activities over the past two years.

The expansion was necessitated to support its global partnerships and as part of its strategy of “One product, one quality and one process.” Fenner has strong global partnerships with Magneti Marelli, the after market firm of Fiat group, General Motors and Tayco. The company supplies high end belts to GM, while it is the sourcing point for OE belts for Tayco.

“These tie-ups are testimony to our ability and in house expertise, particularly our relationship with Fiat. We became the only oil seals sourcing point in India for Fiat worldwide when large Indian companies were reluctant to buy from us,” pointed out Ravichandran.

After a period of no presence in the auto market three years ago, Fenner has now made significant progress in the auto business. Backed by strong marketing thrust, its auto business has grown by 35 per cent in the past two years. It supplies belts and oil seals to two wheelers, trucks and tractors, among others.