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Subros to expand client base

New Delhi, Aug. 26: Subros, the country’s largest automobile air conditioner manufacturer, is chalking out strategies to meet the demands of car companies planning to expand in the country.

The company is looking beyond Maruti Udyog Limited and Tata Motors for more business.

It is also planning to supply air-conditioning systems for tractors and buses.

Subros plans to initially invest Rs 200-250 crore in its five plants in Noida, Manesar and Pune over the next five years. Its current investment in these facilities is Rs 350 crore.

“There has been a huge growth both in the passenger car and commercial vehicle segments. Therefore, we plan to increase our plant capacities from 7.5 lakh units per annum to 1.5 million units by 2012,” CEO D.M. Reddy told The Telegraph.

The company is a three-way joint venture between the Suris — the promoter family — and Japanese companies Suzuki Motor Corporation and Denso Corporation.

The automobile air-conditioning market is pegged at a little over 1 million units. This is expected to double by 2012.

Subros has provided prototype air-conditioners for Mahindra & Mahindra’s Ingineo. It is developing another air-conditioner for an M&M tractor made for the European markets.

Subros also provides air-conditioning systems to Tatra Vectra’s off-road heavy-duty trucks. The company is also in talks with Ashok Leyland to develop air-conditioners for some of their trucks next year.

The company also providing air-conditioner kits for Force Motor’s 12 and 18-seater mini buses. According to company officials, it takes about two years to develop model-specific air-conditioning systems.

Adding to its line of business for Tata Motors, Subros will provide air-conditioners for the company’s new Indica — codenamed X1 project — and a yet-to-be-launched pick-up truck, Xenon.

Nearly 70 per cent of Subros’s sales come from Maruti Udyog Ltd and 28 per cent from Tata Motors.

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