Belgium-headquartered $3.3 billion WABCO Holdings continues to be on the lookout for a suitable acquisition in India while its acquisition of Bengaluru-based AssetTrackr is expected to get regulatory approvals soon, top company officials said.
They also said the Indian company would expand its production capacity at Mahindra World City near here so as to meet the increased export demand.
"We continue to scan the Indian market for acquisition," WABCO Chairman and CEO Jacques Esculier told reporters here.
He was here to launch the company's Intelligent Trailer Programme - safety and efficiency technologies for tractor-trailers, including anti-lock braking function, roll stability support and others for commercial vehicles and trailers.
Queried about the status of AssetTrackr acquisition, WABCO India Managing Director P.Kaniappan said permission from the Reserve Bank of India is expected soon.
Last year, WABCO announced the acquisition of AssetTrackr, a fleet management solutions company for an undisclosed sum, saying it is expanding its global fleet management solutions business to India by this.
Founded in 2013, AssetTrackr helps commercial vehicle fleets track, analyse and optimise their transportation resources and assets in real time.
Esculier said WABCO India will start making the anti-lock braking systems and others in India once the volumes justifies this.
Queried about the volume that would justify a new line, Christiaan Verschueren, Vice President, Trailer Systems & Off-Highway said an annual volume of 25,000-30,000 would be sufficient.
He said WABCO globally makes 500,000 units per year.
Kaniappan said the total trailer market size in India is around 33,000 units and many of the units are in the unorganised sector.
He said the trailer production is expected to grow 14 per cent till 2022 and the demand for anti-lock braking systems will grow as the government has made these systems compulsory in trailers.
According to him, the signs are good for good demand post implementation of Goods and Services Tax.
--IANS
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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