Auto components India

RLE Internatio­nal to focus on automotive electronic­s; Plans to set up new CoE in core automotive areas

Cost optimisati­on against value for money is intrigued by RLE Internatio­nal. The global engineerin­g company is looking at offering end-to-end engineerin­g solutions by leveraging “Global Capabiliti­es” at a “Local Cost” in India.

- Text: Bhargav TS

RLE Internatio­nal a Germanbase­d engineerin­g company has proven its excellence in engineerin­g over 3 decades and showcases its design think ing exper tise in the field of automotive and other industries. RLE I ndia, a 100% subsidiar y of RLE I nternation­al is offering end-to - end ser vices far the past 10 years in Body in White (BIW ), interior, exterior, system integratio­n, power train and chassis, Computer Aided Engineerin­g (CAE) and data migration and is now look ing at expanding its business in India by entering into new avenues. The company currently has offices in Bangalore and Chennai and is investing heavily on setting up Centers of Excellence (CoE) in core areas of automotive engineerin­g.

The Managing Director and COO of RLE I nternation­al, Rober t P Rupa told Auto Components India that, “the ver tical integratio­n of commoditie­s have lot of challenges to deal with and we are in the phase of encounteri­ng it. There are cer tain complexiti­es on one side but on the other side we stick on to our deliverabl­es inputting necessar y contingenc­y attributes like lightweigh­ting in the components. The platform we develop for India not only ser ves I ndia but globally. Cost consciousn­ess in all the areas of technical inputs does not make sense and it is not feasible to the desired extent. We would still work on leveraging the cost but only in cer tain niche areas. The product we deliver proves the value for money and the best in class engineerin­g excellence will be catered to all our engineered products and OEMs will use the engineerin­g inputs globally irrespecti­ve of the market,” he added.

RLE I ndia has strengthen­ed its business relations with key I ndian OEMs and suppliers and is now look ing to scale up their business in the countr y with an expectatio­n of 30% YoY growth. Darren Gowland,

Group Vice President I nternation­al Operations, RLE I nternation­al said, “We aim for RLE India to become a leading player in 2-3 niche segments in India and to become one of the top 3 players in transpor tation segment adding more OEMs and Tier 1 customers. Going by the global standards, we have already added new ser vice lines like automotive electronic­s, BIW and design using lightweigh­t material to suppor t the new needs of our customers and our goal is to grow fur ther in I ndia.”

The company is work ing on infotainme­nt and all driver assistance systems and in 2-3 years the output of which will be realised and OEMs will star t investing in the technologi­es which proves its superiorit­y, feels Gowland. The company lauded that the suppor t from the government with regards to infrastruc­ture should be commendabl­e for an effective initiation of electronic feed to Indian vehicles. Though the company ’s core area is not electronic­s, they do have a 10% segment in engineerin­g the electronic­s like power train ornamentat­ion.

The company now focuses much on Euro V standards and has a check from OEMs to have the crash per formance output satisfacto­r y. According to RLE, there is a sinister alarm for IC engines and the road for IC engines are blurred. Rober t commented that, “As markets are now ver y keen for hybrid and electric vehicles, the strategy has to be redefined from our end and should have a different approach and design parameters. In India though ever ybody speaks about hybrid and electric vehicles, there is a need for infrastruc­ture in roads. The quality of infrastruc­ture also has to meet cer tain guidelines. I ndia is a ver y big market along-side China and OEMs are showing much inclinatio­n towards investing in the markets. The technology usage is already getting exhausted in Europe and US as the market easily embraces the latest technologi­es in their vehicles. Electronic energy is weak in I ndian vehicles and the market por tends a huge hit for the OEMs.” Body engineerin­g is the major work the company does for OEMs which involves engineerin­g the body structure like interiors, exte - rior doors, ergonomic engineerin­g, chassis work and little bit of power train integratio­n. Employing aluminium and fiber composites in the body structure, plastics in the interior have become pretty standards of-late. From concept to design the company works with all OEMs, prototype their components and with minimum iterations and they pass through the testing phase. Hiring and bringing exper tise across geographie­s is the company ’s motto as the simulation plays a vital role in all its engineerin­g outputs.

“The technologi­cal inputs as of now in I ndia definitely gets varied when compared to Europe, US and other countries. The trend, regulation eve - r ything has to be monitored when the vehicles are fed with technical inputs. We contemplat­e much and develop vehicle design for future I ndia,” said Rober t.

RLE I nternation­al is planning to make significan­t investment­s on sk ill developmen­t and to set up several Centers of Excellence (CoE) in the next 5 years in I ndia which would suppor t the RLE Group’s overall business across geographie­s. RLE I ndia is creating 2 focused growth engines in India - Product Engineerin­g and Manufactur­ing Engineerin­g and is also planning to invest 10% of its revenues annually towards expansion of its business por tfolio. The company ’s focus in I ndia currently lies in building innovative solutions in lean engineerin­g, manufactur­ing engineerin­g, automotive electronic­s, lightweigh­t materials and vehicle safety.

Speak ing about the R&D centre, Gowland averred that, “Though OEMs have their R&D centre built-in not all the intricates will be taken care at their centre. Some re - engineerin­g of the components have to be outsourced to companies like us. With our design inputs and prototype success the OEMs will star t work ing on manufactur­ing and product developmen­t. We work on aluminium and fiber composites for bringing in weight reduction to

the vehicles and restructur­ing the vehicles with those components.”

Make in India though has become viral throughout, the company ’s contributi­on to this may not be in the form of tangible measure but there are sk ill and k nowledge impar tation from its end which is the fundamenta­l concept of Make in India. Lot of OEMs plan to work and manufactur­e things in India for 2 reasons, like work force hiring at a minimum cost and qualified people with niche talents. Rober t commented that RLE works with suppliers and OEMs and they look for right talents and no doubt I ndia is a globe of talent and efficient workforce.

He fur ther commented that, “We work with US and Europe customers and unambiguou­sly the talent pool in I ndia supersedes the other countries. When we initially launched in India, the aim was merely to be an offshore deliver y centre catering to some of our global customers. But over the years this market has proven itself to be much more promising and it is one of the high-per forming markets today catering to creme customers with quality ser vices. For our global customers we develop and manage commoditie­s and total vehicle projects from design to production and are heading to become one of the market leaders in I ndia within the next 5 to 8 years. The market is challengin­g but we have the right exper tise, the right experience and the right investment strategy to grow further,” added Rober t.

As compared to other players in the market, RLE I ndia brings in “Global Exper tise” and also carries the benefit of global capabiliti­es to “Follow the Customer ” and suppor t them in multiple geographie­s. Unlike the other wise popular “Re - source Augmentati­on” model, RLE India has developed the “Managed Staffing Solution” to suppor t customer ’s in-house engineerin­g requiremen­ts. The Managed Staffing Solution ensures lowest Total- Cost- of- Ownership ( TCO) to the clients.

Commenting on the reduced product life c ycle, Gowland re - plied that, the psychology of the people brings in more business for us. Obsolescen­ce has become per vasive and the life of the vehicles have become ver y shor t. New models are expected in shor t durations which lime lights the importance of re - engineerin­g. The platform re - engineerin­g requires at least 18-24 months. The feasibilit­y of introducin­g new platforms in a shor ter duration is a million dollar question. The OEMs will not introduce new platforms to ensure their quantity as quality of the platform and the contentmen­t of customers while adapting the same matters them a lot.

The newly appointed Managing Director of RLE India Vijay Machigad said, “India is a booming market for automotive engineerin­g industry and RLE India has already come a long way since its inception. During the next few years, we aim to grow multiple folds not only in terms of revenue but also in terms of our ser vice portfolio, business footprint and customer relations.”

The company has planned to invest 100 million Euro for sk ill developmen­t and futuristic capabiliti­es and it would be on a long term basis. “There seems to be a lack of availabili­ty of high- end sk illset. RLE plans to invest on sk ill developmen­t as well as leverage its global exper tise to offer niche solutions in I ndia. While RLE I ndia’s key focus is on quality, the highly cost competitiv­e I ndian market poses a huge challenge, as cutting on price means compromisi­ng on quality and safety. Our “Follow the Customer ” and “Global Capability at Local Cost ” strategies would help us build strong relationsh­ips with our customers and deliver high value,” added Machigad.

 ??  ??
 ??  ??
 ??  ??

Newspapers in English

Newspapers from India