Transfer of Technology for Air Suspension Springs
Overview
Ever since the discovery of pneumatic technology, the propelling effects of its use can be seen in
almost every sector of the economy. Air suspension system is one such invention in this regard, which is widely used in automotive and locomotive industry. It is used to support the vehicle on the
axles with the help of air bags instead of steel springs in order to provide a smooth riding experience to the passengers.
Hence, there lies a huge potential in this sector to become one of the leading sub-
sectors in the automotive industry.
Keeping this view in mind, an Indian company established its operations to manufacture the
automotive suspension and fastening components for all types of Indian and International vehicles
(LCVs, MCVs, HVCs), Trailers and Special Purpose Vehicles. Its mission is to become a global company
providing total business solutions through quality products, and system services in the field of
automotive suspension components. The product portfolio includes a diversified range of
automotive components, starting from leaf bolts, spring bolt W nut, casting products, bushes to
shaft components, trailer axle and trailer suspension & sub-assemblies. Moreover, the company
soon gained the title of leading and fastest growing Indian manufacturer in this sector.
Pilot
During the 1970s, the company started offering its business services to the global players and
captured a significant market segment ever since. Some of the leading countries where it has a
strong presence include UK, Germany, USA, UAE, Morocco, Egypt, Malaysia, and Singapore.
Moreover, the company serves casting components, CNC machining, VMC machining and other
automotive components to some of the leading OEMs such as Ashok Leyland, Mahindra & Mahindra
(NISSAN), Hindustan Motors Ltd, Maruti Udyog Ltd (SUZUKI) and many more.
Agenda for Expansion
Having achieved an enormous amount of success in the automotive suspension and fabricated components, the company wanted to expand its operations in the manufacturing of Air suspension springs for railways and automotives. However, it was facing challenges in terms of the technology to do so. Hence, the company’s brief was to look for a collaborative partner in order to facilitate an efficient production process.
Our Approach
Verkko Management Consultants Pvt. Ltd. and its subsidiary Verkko Global (www.verkkoglobal.com) is an International Trade Generating and Management Consultancy Organisation based in India, with active presence in 10+ countries. We support Global Companies, Economic Development Organisations, Corporations and Government Trade councils to generate business across the globe.
For a company who had tapped most major automotive industry players, Verkko had to devise extensive research to carry out the sourcing. The strategy was to build relationships with new prospects, increase their valuable engagement score, and realise solutions as per the client’s requirements to have an effective business collaboration. We could successfully identify some of the global players who showed a keen interest in carrying out business with our client in India.
For a company who had tapped most major automotive industry players, Verkko had to devise extensive research to carry out the sourcing. The strategy was to build relationships with new prospects, increase their valuable engagement score, and realise solutions as per the client’s requirements to have an effective business collaboration. We could successfully identify some of the global players who showed a keen interest in carrying out business with our client in India.
Phases of Activity
Phase - I: Analysing the market to find out global leaders in Sliding Plug Doors
Phase - II: Due diligence of the prospect
Phase - III: Visits and Agreement signing
Phase - II: Due diligence of the prospect
Phase - III: Visits and Agreement signing
Proposed Model
Verkko supports Indian Companies of various sectors to expand in the international market through Joint Venture, Technical Tie-up, and Alliance & Collaboration. Accordingly, we proposed three business models to our client namely – Joint Venture based model (100% localisation), TOT model (100% Transfer of Technology), and Vendor based model (50% localisation of components). Since the company’s primary objective for collaboration was to indulge in manufacturing of Air Suspension Springs on a large scale, the TOT business model fitted well to its requirements.
Project Details
Category – Railways
Industry – Air Suspension Springs
Business Model – Transfer of Technology