Interviews - "Pricol aims to be amongst the top three in every product vertical globally." | Automotive Products Finder

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"Pricol aims to be amongst the top three in every product vertical globally."

Published March, 2016

Currently the world's second largest manufacturer of Driver Information Systems (DIS) for the two-wheeler segment, Pricol has a vision to achieve a consolidated revenue of Rs 3,000 crore by 2020. Vikram Mohan, Managing Director, Pricol Ltd, elaborates on the company's future plans.

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What are your organisational restructuring plans, in terms of creating new verticals, dedicated design and manufacturing facilities, institutional sales, aftermarket distribution and others?

With the Automotive Mission Plan poised to implement BS-VI emission norms by 2023, and with the government's intention to directly implement the BS-VI norms by 2020, emission control is taking the front seat in driving the automotive growth. Aligning with the AMP Vision, Pricol intends to develop its sensors line for which we foresee significant growth. Along with a strong and growing R&D strength of 275 employees which will help in bridging AMP's growth vision, Pricol also intends to increase the export revenue catering to after market, which will increase the net exports of the Indian automotive industry.

Are there any Mergers and Acquisitions in the pipeline?

We wish to acquire one entity each, in the US and Europe, in the automotive pumps and sensors businesses, to widen our product as well as customer portfolio, and expand our global reach. We have identified Vietnam as a potential location for setting up a greenfield venture, which we expect to be operational by 2017. Mexico has also been identified as a market which is set to grow and we may look at opportunities there by 2018, based on the growth of its auto industry.

How do you plan to mitigate risks arising out of dynamically changing and volatile business environment in India?

Complexity and volatility always create unprecedented challenges. We believe in handling such situations with scenario planning, which provides the tools for making strategic decisions and taking speedy corrective action.

Could you share your vision 2016-26 for Pricol Group? What is and will be the contribution from each market segment catered by Pricol, as a percentage of the overall business of the company?

At present, our vision is of a consolidated revenue of Rs 3,000 crore by 2020. We are currently the world's second largest manufacturer of Driver Information Systems (DIS) for the two-wheeler segment, about one-fifth of the size of the first largest manufacturer. We aim to grow to being at least one-third of the same, by 2020.

Pricol aims to be amongst the top three in every product vertical globally. The company has strengthened its leadership pipeline to deliver enhanced efficiency and effectiveness, and aligned infrastructure to support this growth.

Pricol is also India's largest manufacturer of automotive pumps for the two-wheeler segment; world's fourth largest manufacturer of instrument clusters for tractors and off highway vehicles; India's largest manufacturer of Telematics solutions for tractors and off highway vehicle segments; India's largest manufacturer of speed governors and cabin tilt mechanisms for the commercial vehicle segment; and among the top 10 global manufacturers of automotive sensors. We aim to consolidate the revenue from these strengths, to grow further.

Pricol has dominated the market by supplying its products across competitive OEM brands. What is the mantra of this success?

The demand for automotive components is essentially driven by the requirement of the OEMs, which is largely influenced by a constantly changing customer demand, thus, growth prospects are dependent on the economic growth drivers. Pricol intends to expand its presence in the Telematics, four-wheeler, oil and water pumps sector for which the capability is available in India, Brazil and Indonesia. Growth in the commercial vehicles and off highway vehicles is expected to be higher, with the increase in infrastructure development across India. We at Pricol have the technological expertise and manufacturing capability to meet the constantly growing demands of the automotive industry. Aside of the inorganic growth approach that we are currently pursuing, Pricol believes that its strong technological capabilities and presence in the automotive field for over 40 years will help to spearhead its vision to increase its consolidated revenue in the coming years.

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What is your take on the growth of auto component industry in light of: Focus on high tech electronics; safety systems; Transport Connectivity; Indian government's intention to leap frog directly from BS IV to BS VI emission norms and increased emphasis on exports?

With a heavy thrust on the automotive component industry, to innovate, while considering the vehicle safety, emission levels as part of the AMP 2016-26, the growth in the automotive industry is bound to phase out the older vehicles, and thereby increase the growth in the Automotive component industry.

We expect the auto component industry to grow by 3.5-4 times by 2026.

How do you visualise the future of the fleet management solutions offered by Pricol in context with numerous corporate and start up enterprises entering this space?

Pricol currently is India's largest manufacturer of centralszed lubrication systems, cab tilt systems and speed governors for commercial vehicles. It is also India's largest manufacturer of Telematics solutions in the tractor and off-highway vehicle segments. Continuing on the incremental importance of Telematics, with the need for asset tracking and management of vehicles, Pricol intends to increase its product offering in Telematics both in India and globally, with solutions customised for every fleet's effective management.

What is your key message to the Indian auto components industry?

The rapidly globalising world is opening up newer avenues for the transportation industry, especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable modes of transportation. The need to invest to strengthen research and development, and to churn out customer focussed solutions rather than just auto components is the need of the hour.

Over the next decade, this will lead to newer verticals and opportunities for auto component manufacturers.

Could you share the details of new product portfolios you have showcased or launched during the Auto Expo 2016?

This year, Pricol showcased seven key product lines at the Auto Expo, which include: TFT clusters, Telematics solutions, body control modules, next generation sensors in meeting emission norms, electric water pump, variable oil flow pump, and centralised lubricating system.

Auto Expo provided an opportunity to showcase innovations that will support the development of the Indian automobile market in the forthcoming years. All our products are designed to improve the relationship between the drivers and their vehicles, while keeping in mind the environment and nature of roads. Pricol is today recognised as a partner of choice for automakers in India and globally, who believes in making vehicles safer, more economical and easier to drive.