Chennai:

Delphi, a global leader in transportation and mobile electronics components, has a 52 per cent controlling interests in Delphi TVS while the rest is held by T V Sundaram Iyengar & Sons and financial institutions.

The company''s initial manufacturing capacity will be 2.5 lakh pieces per annum and will be gradually increased. Nearly half the investment at its facility near Chennai is aimed at meeting Delphi''s needs.

The Indian company is now part of Delphi''s global component supply sourcing base and its exports revenue is expected to grow at an accelerated pace. Currently the company exports around Rs10crore worth of components and some of these find their way back in to the country fitted with OE (original equipment) diesel engines.

In the Indian market Delphi TVS is the largest supplier of rotary diesel fuel injection systems for car, multi utility vehicles and tractor producers. Tata Motors Limited sources 100 per cent of its requirements from Delphi TVS for Indica and other models built on the same platform. Till date, Delphi TVS has produced 10 lakh pumps.

Speaking about the new project T K Balaji, managing director, said, "Common rail diesel injection systems will enable automobile manufacturers to leapfrog in meeting the emission standards instead of going in stages. This in the long run will work out economical for the passenger car manufacturers." According to him, the common rail technology offers the user enhanced driving experience, more or less, similar to petrol engine powered vehicles.

It may be noted that the country has a long drawn a multi stage emission norm programme. Initially Delphi TVS will cater to the needs of passenger cars segment (cars, multi utility vehicles) and later expand to the tractors sector.

The company expects the diesel engines market to expand rapidly and wants to cash in on the boom. J S Chopra, president, said the segment is growing at a faster clip. From 6 lakh diesel vehicles in 2001, the market is expected to touch 10 lakh vehicles in 2005 and 18 lakh by 2010.

Indicative of the oncoming boom is the fact that in the passenger car segment about 1.8 lakh diesel cars are being manufactured and this is expected to increase to 10 lakh by 2010.

The company has signed a deal with Tata Motors to supply the new diesel injection systems and talks are on with other vehicle manufacturers.

Apart from the new product, Delphi TVS is also setting up a technical centre to expand its engineering capabilities. The centre is set up an outlay of Rs50 crore and is part of the overall investment programme. The centre will house facilities like chassis dynamometer, cold room Common Rail engine test bed and Common Rail test rigs. The centre is expected to start functioning next year.

Delphi has a software outfit in Bangalore. Jon DeGaynor, business line executive — Diesel Systems said, "Delphi will be increasing the headcount in Bangalore." According to Balaji, expertise from that outfit will be available for the technical centre.