TE Connectivity targets $1b India revenue in 4 years
Dec 02 2012 , New Delhi
The NYSE-listed company that deals with electronic connectivity systems and solutions is focusing on defence, telecom and automobiles to sell about two trillion components that it produces across the world.
TE Connectivity India, the Bengalore-based 100 per cent subsidiary of Swiss-US conglomerate, will drastically slash imports from its associates and group companies abroad given the depreciation in the greenback.
“We would like to increase local sourcing of our components to 60 per cent from the prevailing 25 per cent given the dollar depreciation that has happened recently” V Raja, president and managing director of TE Connectivity India told Financial Chronicle.
Raja is banking heavily on the boom in the Indian automobiles industry that posted double-digit growth before the global meltdown. “Both passenger and commercial vehicles across brands use our cables and connectors in a big way” said Raja.
TE Connectivity would pitch for business worth Rs 1,000 crore from defence establishment that is making huge procurements. With domestic manufacturing capacities and tie-up with local suppliers like Tatas, Mahindra & Mahindra, it will take advantage of the $10 billion worth opportunity in defence under the ‘offsets’ provisions.
Further, recent cabinet decision to make it mandatory for 30 per cent domestic sourcing for burgeoning electronics industry would also work to advantage of companies like TE Connectivity. “There is tremendous amount of opportunity in both defence and electronics industry for our connectors and cables” said Raja.
The Swiss major is also consolidating its Indian manufacturing facilities under one roof spread across 60 acre facility in Bangalore. It will invest Rs 300 crore in the integrated manufacturing plant under construction at Aerospace Park, Yelahanka, Bengalore. TE plant at Bangalore would be operational in two years.
TE’s manufacturing plants in Shirwal and Wagholi in Pune will be expanded over next three years.