Gabriel India sees hike in market share ahead

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Gabriel India sees hike in market share ahead

In an interview to CNBC-TV18, Arvind Walia, managing director of Gabriel India, spoke about the latest happenings in his company and the road ahead.

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In an interview to CNBC-TV18, Arvind Walia, managing director of Gabriel India , spoke about the latest happenings in his company and the road ahead.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Can you start with talking about the supplies which are expected to start to Volkswagen in FY12. How much of an opportunity does this create for Gabriel India?

A: In FY12, we have some interesting opportunities, which are coming up. We would be starting our supplies to Volkswagen. They would be localising in this part now. We have been at it for more than two years - developing the product - and now it's ready. We would be starting the supply by middle of this year. There are some interesting new offerings coming from Mahindras where we would be supplying - whether it's Mahindra-Nissan or the main company.

Ashok Leyland is looking a new vehicle and we have contract for supplying to all the new products. TVS is coming up with new models where we are going to supply to them. We have a fairly interesting year ahead of us.

Q: Could you tell us what contracts you have signed? What is the size of these contracts with Volkswagen or Ashok Leyland or Nissan - just to get an idea of what the deal pipeline currently stands like?

A: We start working and developing the products when they start planning for the model. It is longish exercise, which takes about two years plus to develop a product, which suits a particular application. So these contracts have been signed earlier and now they have come to fructify. In the sense that we have got the product ready and they are about to launch their vehicles and we would be supply to them now.

Q: What is happening in Japan because we understand you supply to the likes of Toyota. Toyota has already announced that they have reduced their production because of the tsunami and the earthquake. Has there been any hit for Gabriel India on the kind of volumes you give over there and how will it show up on your financials?

A: We are importing some components from Japan but so far the information available to us is that our imports are not going to get impacted.

Q: What is your market share currently is within the two-wheeler space? We understand that that has been increasing on year on year basis.

A: Right now, our market share for two-wheelers would be around 20%. This has increased from last year. I am talking about FY11, and it was re-estimated 20% up from nearly 18%. Similarly, our passenger car market share would be around 35%. This year probably because of our predominance in Nano and Volkswagen, probably we will have some increase in the market share. Commercial vehicle we dominate by around 18% plus so that is going steady.