Behr-Hella Thermocontrol GmbH (BHTC), a leading multinational player in the climate control and thermal management solution for the auto industry, expects its India business to grow at double the pace of its global operations.
The company plans to tap into the growing domestic market and use India as a critical sourcing base for electric vehicle (EVs) components and solutions.
"We expect India to grow at a CAGR of 15% in the next five years, as against a plan of 7% growth we expect globally," said Michael Jaeger, CEO of BHTC group, who was in the country along with other board members of the German firm to inaugurate its new manufacturing facility in Pune. "The new facility will cater to the growing demand in the country but will also be a key strategic export hub for our thermal management system and automotive displays, or human-machine interface solutions," he told ET.
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BHTC has committed Rs 100 crore to expand the facility in Pune. There is big growth plan for global development from India and the new facility will focus on both manufacturing and R&D side, Jaeger said. "The centre of competency here will also work on software development for global projects."
He said the company plans to ramp up "R&D strength to about 300 very soon" to accelerate its global development activities in the coming months. "Our engineers in India are already working on the latest technologies and innovations for local and global customers," he said.
The firm will leverage its local expertise to provide end-to-end, innovative and cost-effective solutions to global and local customers, the CEO said.
BHTC expects the share of its Indian business to double to about 10% of its total revenues and profits in the next five years. The firm believes that the shift towards electrification adds to the opportunities for the company to grow.
Behr-Hella Thermocontrol GmbH (BHTC), a leading automotive displays, climate control and thermal management player, announced the launch of its fully integrated manufacturing facility in Pune.
The new facility was inaugurated in the presence of Michael Jaeger, CEO, BHTC Group; Sudeesh Karimbingal, Managing Director, BHTC India, and Kress Kolja, Group CFO and Board Member of BHTC India, and other company officials.
The facility is spread over an area of 1,20,000 sq feet and employs around 300 people. The company has already invested about €10 million in India and has committed another €8-10 million until 2023. The new facility will cater to local and global customers.
BHTC has Tata Motors and Mahindra & Mahindra as its local clients and Audi, Mercedes-Benz, Volkswagen, Skoda and Volvo as its global clients.
The Pune facility specialises in end-to-end product development and manufacturing of advanced human machine interface (HMI) and climate control panels. The company recently upgraded its manufacturing capability and capacity in India.
The facility houses advanced testing and validation center, global R&D center, global IT and shared services, all under one roof.
Why it is important
Opening of the new facility underscores the strategic importance of India as one of the key pillars of BHTC’s global R&D network. . With the expansion, BHTC aims to accelerate the global development activities in the coming months and ramp up its R&D strength to about 300.
Sudeesh Karimbingal, Managing Director, BHTC India, said, “The investment in the new facility not only meets the increased demand for our products but is also has a positive cascading effect on employment generation and skill development. We are very well positioned to achieve our 2025 strategic goal – to be the market leader in India for automotive HMI and climate control products. We aim to outperform the industry by growing over 15 per cent CAGR in the next five years based on the strong order book.”
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