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Bombardier to up local sourcing

Bombardier Transportation, the Berlin-based railway equipment-manufacturer, is working towards in its metro rail coach factory in Savli, Gujarat.

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Made in India, by India, for the world. This is what Bombardier Transportation, the Berlin-based railway equipment-manufacturer, is working towards in its metro rail coach factory in Savli, Gujarat, which it envisages to be its Southeast Asia hub.

The company plans to indigenise as many processes as possible in manufacturing metro coaches, to bring down costs and ease sourcing of equipments from vendors.

“We want to, and are trying to, do most of the processes indigenously as there is a business sense in localising,” said Rajeev Jyoti, president and managing director, Bombardier Transportation India. He spoke to DNA  at the handing over of the first Movia metro rail coach to Delhi Metro Rail Corp.

The Savli facility is currently executing orders to manufacture 424 Movia coaches for DMRC for Rs 3,000 crore. Of these, 392 will be made in India and the rest will come from a plant in Germany.

While the company imports the steel needed, it sources the transformers and motors from local companies. About 30% of the manufacturing process and equipments sourcing is localised, which the company wants to take above 50%.

For this, Bombardier is getting some of its global vendors to set up shop in India. Two vendors — Italy-based Saira, a transportation interiors & components manufacturer, and China-based Ultimate Transportation Equipment — have already set foot in India. The company expects at least 10 other vendors, who are into manufacturing steel parts, interiors, handles, etc, to make a similar move.

The company is in talks with JSL (formerly Jindal Stainless) to produce special stainless steel so that the core input can also be sourced locally. “JSL, being an integrated steel company has the capability to produce this high grade steel, but the cost has to be competitive as it is a global commodity,” Jyoti said.

For the DMRC order, Bombardier imports steel from South Africa, Malaysia and Bahrain.

DMRC managing director E Sreedharan too saw more scope for localising. “While only a few electrical items and couplings are indigenously made now, there is scope for air conditioners, handles seats, interior padding, etc, to be built also, and should be explored.”

However, Jyoti added that production can never be 100% localised. “The localisation strategy should be in line with our delivery schedules as well and that’s why we are not doing it blindly,” he added.
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