Brakes India, a joint venture between the TVS Group and Lucas Industries and a leading manufacturer of automotive and non-automotive braking systems and ferrous castings, expects the country’s commercial vehicle market will improve after a two-year slump.
04 Feb 2015 | 8584 Views | By Kiran Bajad
Brakes India, a joint venture between the TVS Group and Lucas Industries and a leading manufacturer of automotive and non-automotive braking systems and ferrous castings, expects the country’s commercial vehicle market will improve after a two-year slump.
“We cannot give any time frame for this and will have to ...
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Brakes India, a joint venture between the TVS Group and Lucas Industries and a leading manufacturer of automotive and non-automotive braking systems and ferrous castings, expects the country’s commercial vehicle market will improve after a two-year slump.
“We cannot give any time frame for this and will have to wait and watch,” said S Kesavan, executive director, Brakes India.
Kesavan was speaking on the sidelines of an event to commission the company’s 8 MW solar power systems built by SunEdison Inc at Brakes India’s facilities in Munanjipatti, Tamil Nadu. The project cost of Rs 66 crore has been shared by both companies. It is one of the largest solar power projects for an automotive component manufacturer in India.
Brakes India, which caters to every segment of the automotive industry barring two-wheelers, has seen flat growth over three years but has managed a decent performance due to its diversified product portfolio and exports. At present, the company’s exports stand at around 20-22 percent of total business. According to Kesavan, exports have helped the company improve both product quality and technology.
While solar power is significantly more expensive than conventional power, the company is looking at a 10-15 year time horizon to recover costs and make the initiative sustainable. The solar plant will generate approximately 14 million kWh of electricity annually, which works out to about six percent of Brakes India’s electricity needs.
The Tamil Nadu Regulatory Commission and Tamil Nadu Generation and Distribution has said that high-tension wire customers must source six percent of their energy use from solar power. Due to increased industrial activity including the automotive sector, Tamil Nadu faces a substantial power availability problem. Several companies currently source requirements from other states.
The state’s Electricity Act 2003 allows companies, under the group captive scheme, to purchase electricity directly from an independent power provider without involving local power distribution companies. In June last year, the government had announced that the state would be free of power availability issues. While much has been done to bridge the gap through non-conventional sources such as wind energy, the latter is not always reliable as it is not available throughout the year.