China, the world's largest automotive market, may see the entry of Indian component supplier Jaya Hind Industries. This entry will happen through its joint venture with French casting component maker Montupet.
Jaya Hind Montupet is in talks for a "big order" of cylinder heads from a global OEM, which prefers the order to be supplied from a base in China. "They want a new cylinder head to be produced in China. So, now we may go to China with our first foundry as a JV," says Prasan Firodia, director, Jaya Hind Montupet. The French company already has a sales office in China.
Setting up a new plant with an order from only one OEM also means an additional challenge of getting new customers in a new market. So, the JV is negotiating with the OEM if the order can be serviced from its new plant in Dewas (Madhya Pradesh) till the demand from China reaches a critical scale. China is one of the markets that the Jaya Hind Montupet JV will serve. Russia and Asia Pacific are the others. "The whole territory is now ours. That's the long term and the bigger objective," says Firodia after the inauguration of a gravity die casting foundry at Dewas. The Rs 200 crore facility is Montupet's eighth plant and the fourth for Jaya Hind Industries.
The final call on whether the JV will set up a manufacturing base in China now or supply from India initially, will be taken in the next 3-4 months.
If all goes per plan, Jaya Hind Industries will join the league of other Indian suppliers like Sundram Fasteners and Tata Autocomp in entering the dragon.