Austria-based HENN Connector Group will establish a contract manufacturing alliance as part of its India plans.
Martin Ohneberg, Chairman, told Mobility Outlookthat the idea was to take a step-by-step approach in building its presence here. He was in India recently to finalise investment plans for HENN.
The company’s line of business is cutting-edge connection systems catering for charge air and cooling water systems for automakers. It serves as a vital link between suppliers and end customers. HENN’s quick-fit couplings are used widely by many vehicle makers across the globe.
Ohneberg had earlier visited India during the Auto Expo in January, where he interacted with customers. His more recent visit involved incorporating the HENN entity here, followed by the decision to focus on local production.
'Either we do it by ourselves or contract manufacturing to start with,” he said. While reiterating that “it is always good” to be on the ground to understand the market potential, Ohneberg added that he had met many customers, suppliers and consultants along with visits to the IIT Madras Research Park “as we want to set up an engineering centre in India”.
Road Ahead
According to him, the manufacturing operations will be a combination of making some parts locally and leaving the balance to contract manufacturing. Based on “market development and how successful we are,” the next round of steps will be taken. The India operations will also cater to other parts of Asia except China, where HENN already has a huge manufacturing setup.
“I see huge potential to make components in India. We will start by making some parts locally and sourcing some from our global suppliers,” said Ohneberg. His visits to some plants for contract manufacturing convinced him that they have the needed skills.
“Localisation is always an advantage because of (savings on) transportation costs, customs duties, time and easy availability of products,” he added when asked if importing parts was an easier option.
With volatility all around, especially with the wars in Ukraine and Gaza, there could be pressure on the availability of containers and key parts. “It is important to have a sustainable supply chain, and this is where I believe in localisation. I am sure the products made here will be of global quality and cost-competitive,” said Ohneberg.
Customised Products
HENN sees good potential with both ICE (internal combustion engine) and electric vehicles and believes its products offer the best mix in technology, competitive pricing and quality. While it has automated lines worldwide, India will see more semi-automation to make the products more competitive.
For instance, in the case of metal connectors, EVs have about 10-20 parts, while this is 4-5 in the case of ICE. Ohneberg said HENN has distinctive products that can address many pain points of OEMs and battery pack makers.
“Our product designs are unique, and keeping in line with sustainability, this extends to environmentally friendly material offerings,” he added. The Austria-based entity is also open to investing in Indian startups and making injection moulding parts.
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