Saint-Gobain Glass India will begin OEM (Original Equipment Manufacturer) auto glass supplies to Hyundai India, the country“s second largest car maker, from 2005. The company, which has committed mor…
Saint-Gobain Glass India will begin OEM (Original Equipment Manufacturer) auto glass supplies to Hyundai India, the country“s second largest car maker, from 2005. The company, which has committed more than INR 1.25 billion to setting up an auto glass plant in its flagship Indian subsidiary, will be the second OEM supplier to Hyundai after Asahi India. B. Santhanam, managing director of Saint-Gobain Glass India confirmed the OEM deal, but would not comment on the likely supplies to Hyundai in 2005, saying only that the potential is huge. The unit being built at Sriperumbudur near Chennai is part of the company“s INR 6.5 billion expansion plan. As well as the automotive processing unit, the company is also setting up a second float line. The facility, expected to come on-line towards end 2005, will have an initial capacity of a million car sets. The unit will produce laminated, toughened and tempered glass for windshields, sidelites and backlites. Santhanam said the automotive processing unit at Sriperumbudur is part of the company“s plan to have a dual production base reflecting the location of the auto industry, which is equally divided between north and south. Another Saint-Gobain subsidiary, Saint-Gobain Sekurit India has two plants in Pune with a capacity close to 500,000 car sets. Saint-Gobain Sekurit India now caters extensively to Tata Motors and supplied wind shields for the Toyota Corolla. The company is in negotiations with several other auto firms in India for similar OEM supplies, Santhanam said. He added that in Europe, Saint-Gobain had a 40% share of the automotive glass market and it is only logical for European auto firms setting up in India to look to Saint-Gobain as well. Despite its greater focus on the auto sector, Saint-Gobain will continue its supply agreement with Asahi India. The company supplies raw glass to Asahi India“s Haryana and Chennai plants.