Denso India Limited
Add to watch list to get report alerts
BSE Code:
520022
NSE Code:
NIPPONDENS
Business Profile
Business Profile
Denso India, formerly known as Nippondenso India, was promoted in 1985 as a joint venture between the SRF group and Nippondenso of Japan. SRF later sold its stake in the market. The company is mainly engaged in the manufacture of alternators, starter motors, wiper motors and other automotive electricals. Denso Corporation, Japan, (formerly Nippondenso), assumed effective control of Denso India management in April 1993. This happened after Denso Corporation raised its stake from 26 per cent to 37.90 per cent, while Sumitomo, Japan, and Maruti Udyog (Maruti) picked up 9.5 per cent each. Denso Corporation pumped in further funds in 1997 and 2000 to fund its expansion plans to increase its stake to 64.1 per cent.
The company has a market share of around 18 per cent with the leader being TVS Lucas. Its main customers in the OEM segment are Maruti, Hero Honda, Toyoto Kirloskar, Tata Engineering (Telco), Hindustan Motors, Eicher, Daewoo Motors, Swaraj Mazda, Hero Honda, Bajaj Auto, Escorts and Greaves.
Recent Developments
To integrate the marketing function of all affiliate companies of Denso in India, a new company, Denso Sales India, has been incorporated.
The company has set up a new marketing arrangement mainly to tap the lucrative replacement market.
To increase its presence and diversify its product portfolio, the company commissioned two new units in 2000, one at Gurgaon (Haryana) and another at Bangalore (Karnataka) to manufacture pollution control equipment and brazed aluminium radiators.
Future Plans
Denso Corporation of Japan plans to invest Rs 410 crore in its manufacturing facility at Gurgaon by 2004-05.
The company will focus on expanding in the auto ancillary and components sector as well as look at entering the telematics sector with electronic alert systems and control panels.
Denso hopes to add other Japanese and US automobile manufacturers to its customer base in India. Globally, it supplies its range of auto systems and components to auto giants like Toyota Motor Corporation, Mitsubishi Motors, Daimler Chrysler, General Motors, Ford Motor Co, Honda Motor Co and Suzuki.