NRB Thai Kick-off Ahead, Bet's Big

NRB Thai Kick-off Ahead, Bet's Big NRB Bearings is betting big on its Thailand operations, set to kick off early next fiscal. This would eventually become the gateway for exports to the ASEAN region. "NRB Bearings (Thailand), our 100 percent arm, is extremely important to us from the viewpoint of increasing our international business. We will primarily look at one-tonne pickups as well as two-wheelers," company president, Harshbeena S Zaveri told DNA Money. NRB (Thailand) will also look at the non-automotive business and plans to manufacture spares for textile machinery. The plant is located in the busy auto hub at Rayong and will make needle bearing products and other auto parts. The investment, planned in phases, will be in the region of Rs 40 crore. The production capacity is about 32 million bearings annually. Nearly 70 per cent of the production will be exported and the balance supplied to the Thai market. According to Zaveri, the fact that important Indian vehicle manufacturers are setting up shop in ASEAN could also translate into potential business for NRB (Thailand). For instance, TVS has already started production of its step-thru, Neo, in Indonesia, while Bajaj Auto is planning to follow suit next year with motorcycles. Tata Motors has already announced its intent to roll out its pickup, the Sprint, in Thailand soon. Interestingly, NRB is the first Indian automotive company to be registered in Thailand. Other big component makers like Endurance, Subros, Tata Auto Plastics and Lumax are also looking at the country in a big way. A compelling factor for most of them is the Tata project, though Zaveri was categorical that in the case of NRB (Thailand), the prime target was the pickup and two-wheeler markets, which are dominated by the Japanese. Toyota and Isuzu control over 80 per cent of the pickups market with Nissan, General Motors and others accounting for the rest. In the two-wheeler space, the likes of Honda and Yamaha are the lead players in ASEAN. Zaveri said the biggest challenge ahead was to understand the industry and export products successfully with the 'Made in Thailand' tag. "Our export focus is ASEAN and Europe and it is our endeavour to promote the NRB brand aggressively while taking one step at a time," she added. Clearly, the free trade agreement between India and Thailand will also create greater synergies in operations for a host of Indian auto companies heading outwards. It is equally significant that companies like Tata Daewoo Commercial Vehicles could exercise the option of using the FTA for exports from Korea to say, South America or Pakistan. Back home, NRB is also getting ready to commission its new plant in Uttarakhand, which will meet the needs of Tata Motors, Ashok Leyland, Mahindra & Mahindra, Hero Honda and Bajaj Auto located nearby.