Tuesday, June 18, 2024

Delphi-TVS chalks out ₹450-cr. expansion plan for Oragadam unit

Delphi-TVS Technologies, Chief Technology Officer B. Viswanath, President A. Viswanathan, Chairman and Managing Director T.K. Balaji and Chief Operating Officer S. Ravichandran at a press meet in Chennai on Tuesday.

Delphi-TVS Technologies, Chief Technology Officer B. Viswanath, President A. Viswanathan, Chairman and Managing Director T.K. Balaji and Chief Operating Officer S. Ravichandran at a press meet in Chennai on Tuesday.
| Photo Credit: N. Anand

A Vishwanathan, President - Delphi-TVS Technologies

A Vishwanathan, President – Delphi-TVS Technologies

Delphi-TVS Technologies Ltd. has chalked out a ₹400-450 crore plan to expand production capacity at the Oragadam plant by more than 50% to make nearly one million Common Rail (CR) systems, said president A. Viswanathan.

“We are planning to expand the production of CR Systems from the present 6 lakh sets per annum to nearly one million over the next three to four years,” he said during an interaction.

According to him, Delphi-TVS plans to invest about ₹150 crore every year for the next three years. The project cost will be met through internal accruals and borrowings. The expansion will happen at the existing plant in Oragadam as it has sufficient space.

Delphi-TVS is a prominent supplier of automotive and diesel fuel injection systems to a wide range of auto majors such as Tata Motors, Hyundai, Ashok Leyland and M&M. On Tuesday, the company announced the production of three millionth CR system.

“It took us six years to achieve the first million, five years for the second million and three years for third million. The fifth million will be achieved in two years,” he said.

Going forward, Delphi-TVS will focus on making CR systems for tractors and commercial vehicles, said B. Viswanath, chief technology officer.

Asserting that the diesel engines would continue to be in vogue for a long time in the country, he said that they working on the next set of fuel efficiency norms including the next round of tractor emission norms TREM V that would require CR systems.

To a question, Mr. Viswanathan said that they ended FY23 with a turnover of ₹1,800 crore, an increase of about 20% over the year-earlier period. Exports accounted for 15% of revenue with the products being shipped to European and Korean OEMs.

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