Overview
Braking systems are of utmost importance in rail transport, as they are responsible for slowing down the movement of a vehicle and preventing it from moving on. In 1869, George Westinghouse invented the air brakes for rail transportation to improve braking and safety and prevents the frequent train accidents.
The braking system has evolved into a complex device that can adapt to different road conditions and focus on improving the safety and efficiency of the vehicle. Nowadays, two main types of braking systems are used to stop trains on their tracks: Air brakes and pneumatic brakes.
Pilot
Our client company AVTEC a subsidiary of CK Birla group was established in 2005 and is one of the largest independent manufacturers of powertrains (engines and transmissions) and precision-engineered products such as cylinder heads, cylinder blocks, crankshafts, camshafts, cam rods and transmissions in India. The company serves some of the national and global industries such as automotive, defense, agriculture and railroads both with its own products and contract manufacturing.
The company’s main strength is in-house research and product development through technology adoption and seamless integration of product design, prototyping, testing and validation.
Agenda for expansion
The company has expertise in designing and manufacturing engines, gearboxes and high-precision components for various sectors and was looking forward to having the capacity to manufacture new products in the Indian market. As a result, the company decided to expand its business by manufacturing braking systems for rail transport in India. However, the company is facing technological challenges to manufacture the above product on a large scale. Therefore, a business collaboration (joint venture/technology transfer) is required to overcome this hurdle.
Our approach
We have planned and realized solutions as per the client’s requirement to help them extend their services to Indian Railways. One of the specific conditions for a potential prospect was to find manufacturers of braking systems for rail transport whose technology would be adopted for manufacturing the product in India (compatible with the specifications of Indian Railways). However, through extensive market research, we could identify some of the world’s leading companies that the specified requirements.
Phases of activity
Proposed model
Verkko supports Indian companies in various sectors to expand in the international market through joint ventures, Technical Tie-up, and Alliance & Collaboration. Accordingly, we propose three business models to our clients, namely – joint venture- based model (100% localization), TOT model (100% technology transfer) and vendor- based model (50% localization of components). Since the company’s primary goal for collaboration is to manufacture braking systems for rail transportation, the joint venture model is proposed for their needs.
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