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Monday, August 24, 1998

Eicher in talks with US firms for gear supply 

PRESS TRUST OF INDIA  
New Delhi, August 23: Eicher group company Ramon & Demm is holding talks with American car manufacturers for supplying gears and other components, group Chairman Subodh K Bhargava has said.

``We have already been shortlisted as the original equipment manufacturer of some companies,'' Bhargava said.

He said officials of foreign firms had already visited the facilities of Ramon & Demm and that price negotiations were on. He, however, refused to divulge names of foreign firms.

Ramon & Demm, with manufacturing site at Thane, is planning to sell gears, shafts, pinions and other components as original equipment to these auto companies.

Bhargava said the group had identified exports as a thrust area, and Ramon & Demm would play a key part in that. The gear business of Eicher, consisting of Ramon & Demm and Eicher Demm, had last fiscal year recorded 5 per cent growth at a sales of Rs 107 crore.

``The performance of our gear business during 1997-98 was relatively a sustained one due to better balance in portfolio. The negative impact due to more than 30 per cent decline in commercial vehicle sector was offset by increased demand from the tractor sector,'' Bhargava said.

Last year the company expanded its product range by developing 30 new products which ``not only helped to enhance sales but also to break into new markets, which has so far remained untapped,'' he said.

Consequent to identifying exports as thrust area, Ramon & Demm is exploring the US market through the new office of Eicher at Chicago.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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