81
Far East Ltd, Hong Kong - a subsidiary of Knorr- Bremse AG, Germany.
Knorr-Bremse India Pvt Ltd was set-up in 1993.
However, the Railway division was present in India earlier, through a licensing agreement with Escorts group.The company has played a significant role in the progress of Indian railway operations over the years. It has also been involved in the Metro projects of Kolkata and Delhi - the brake systems for both the Delhi and Kolkatta Metro were provided by Knorr-Bremse.
India is a key market for Knorr-Bremse
Knorr-Bremse sees a lot of potential in India for their rail vehicle systems division. Indian Railways has one of the largest rail networks in the world. In addition, rail infrastructure is being upgraded with the introduction of an increasing number of super fast trains.The company also expects India to develop more metros and dedicated freight corridors. All these would translate to growth opportunities for the company.
Introduction of new products has helped the company clock strong growth
Knorr-Bremse’s growth in India has been impressive so far.The company has been growing at a CAGR of 35 per cent for the last 5 years. Currently, it enjoys around 33 per cent market share in India, in its range of products.The company has been able to achieve this growth, despite the market not growing as fast, through the introduction of newer products into the Indian market.
Knorr-Bremse is one of the leading manufacturers of braking systems for rail and commercial vehicles globally. It also produces door systems for rail vehicles and torsional dampers. Founded in 1905 by inventor Georg Knorr, the group has over 12,100 employees with global sales of US$ 3.4 billion.The company operates in more than 60 locations worldwide. Knorr-Bremse Group is divided into two divisions – Rail Vehicle & Systems, and Commercial Vehicle Systems.The company has a leading global market share in the braking systems for its two divisions.
Knorr-Bremse is well established in India
Both divisions of the Knorr-Bremse group have their operations in India.While Knorr-Bremse India Pvt Ltd is a 100 percent subsidiary of Knorr- Bremse’s Rail Vehicles division, the Commercial Vehicles division is present as a JV between Tata Auto Comp Systems Limited and Knorr-Bremse
KNORR-BREMSE
INDIA PRIVATE
LIMITED
82
Future plans
Knorr-Bremse plans to consolidate its position in India and grow significantly in the domestic market in the next few years.The plan is to expand the presence in India through the introduction of newer technology to replace the existing technology, as Indian Railways modernises.The company may also introduce more products from its global portfolio into India.
In the long term the Knorr-Bremse plans to leverage its India operations and possibly convert India to a manufacturing base. India is also seen as a possible base for engineering development, providing engineering support to develop new concepts.
Knorr-Bremse started its operations in India with the introduction of brake control valves for freight trains.The product portfolio has expanded to include brake systems for passenger trains, electronic brake controls, air driers and shock absorbers.
Product range and technology are keys to the company’s success
Knorr-Bremse India has benefited from the parent company’s capabilities in product development and technology. Globally, Knorr-Bremse spends nearly 5 percent of its turnover on R&D, and the Indian arm has leveraged this capability to introduce new products into the Indian market.
Knorr-Bremse has a wide variety of products for railways, such as brake control systems, shock absorbers, Air-conditioning systems,Toilet
management systems, Signalling systems, Platform screen doors, etc.The Indian arm has been progressively drawing from this portfolio to meet the local market requirements.The company’s focus has been on customising existing global products for Indian requirements, rather than developing new products for India.
The company has also been successful in transferring knowledge and expertise to its Indian employees.This has helped the company to increase productivity, reduce costs and also differentiate itself from competition.
Knorr-Bremse: At a glance
• Started India operations in 1993 and currently enjoys a 30-33 per cent market share across products in India.
• For Knorr Bremse, India is: A strategically important, key growth market
• Factors for success:Wide range of products, technology support from the parent
• Future plans: Grow significantly in the domestic market, Leverage India and make
it a manufacturing base
