RSB creates another global footprint

In
1975, two young entrepreneurs from Jamshedpur from a humble middle-class background plunged into
the hurly-burly world of business with a passion and dedication to do something
different, to traverse a different path. For the brothers Rabindra Kumar Behera
(RK) and Suvendra Kumar Behera (SK), “dreams were responsibilities”. RK had
just chucked the security of a job with Bokaro Steel after graduating as a
mechanical engineer from NIT, Jamshedpur and SK was pursuing his commerce education. They
ventured with little finance – a mere Rs 15,000 – borrowed from their father.

The
duo established International Auto Products, a sole proprietorship company and
the operations commenced in 1975. After several transformations it became a
public limited company, International Auto Limited, in 1994, which eventually
merged with RSB Transmissions (I) Limited in 2009. The group has, in a span of
three-and-a-half decades, grown into a global engineering institution with
turnover in excess of Rs 1,200 crore in automotive components and systems and
construction equipment aggregates, operating in several countries. Presently,
it has 13 manufacturing plants spread over seven locations in India, namely
Jamshedpur, Pune, Dharwad, Chennai, Pantnagar, Cuttack, and Lucknow, as also
one each in Homer (USA), Tessenderlo (Belgium), and Silao (Mexico). RSB
operates in two verticals: automotive and CMI (construction, mining and
infrastructure) equipment and aggregates.

In
the automotive vertical, RSB is a leading global manufacturer of propeller
shaft systems and components; an array of axles including front axle, trailer
axle, tractor axle, dummy axle and axle beam; fully finished gears, shafts,
hubs and sleeves; and transmission components like differential cases, yokes,
and carriers for medium and heavy commercial vehicles, passenger cars,
tractors, and light commercial vehicles. In the CMI segment, it is a leading
manufacturer of heavy fabrications and aggregates like frames, arms, booms, and
buckets for excavators, back hoe loaders, and front end loaders.

In
a recent development, RSB Transmissions (I) Ltd has signed a technical know-how
agreement with Fontaine 5th Wheel, UK, to manufacture and sell fifth wheel coupling for
domestic market under the brand name RSB-Fontaine and export to Fontaine, UK. Excerpts from an interview with S K Behera, vice
chairman and managing director of the company.

Could
you elaborate about your agreement with Fontaine?

Fontaine
Fifth Wheel is the European division of 
Fontaine International Inc., the largest fifth wheel coupling
manufacturer in the world. Fontaine Fifth Wheel has its corporate headquarters
in Birmingham and Alabama in the United States.  It is a
member of the Marmon Highway Technologies Company which supports the
transportation industry the world over with a wide range of high-quality
products and services. This technical know-how venture will boost the market
growth of fifth wheel coupling for RSB pan India and overseas with the use of latest
state-of-art-technology from Fontaine.

Using
the technology from Fontaine, what will be the manufacturing set-up to make the
fifth wheel couplings in

India? Will an additional production line be started?

We
will certainly have to set up an additional production line to manufacture the
fifth wheel couplings and we are planning to install a production capacity of
3,000 fifth wheel couplings per month which might be increased based on future
commitments. Our investment for this facility would be about Rs 31 crore in the
first stage. These fifth wheel couplings are intended for export and  also for sales in India under the brand name of RSB-Fontaine.

What
is the market size for fifth wheel couplings in India?

According
to our study, the demand stands at about 22,000 fifth wheel couplings per
annum. These are limited to tractor models only.

Has
there been growth in the tractor-trailer market in India? What about the global scenario? How is the future
for this market expected to pan out?

The
market is now consistent in India with not much growth due to economic slowdown in the
automotive sector. But considerable growth is expected in the future. Globally
there is a good market for fifth wheel couplings, which is expected to expand
further.

Do
such couplings undergo continuous development or is there not much change in
the basic design and

material
used?

There
is a continuous process for design and development for fifth wheel couplings
for which we have a dedicated team. For instance, higher load capacity 28T
fifth wheel coupling is under development and we have already developed
sliders, which we will be exporting to Fontaine, UK

Apart
from the new market you will develop for fifth wheel couplings, who are your
Indian and overseas customers?

They
are leading Indian and global OEMs like Tata Motors, Tata Hitachi, Ashok
Leyland, Mahindra & Mahindra, John Deere, Fiat, Ford, Allison
Transmissions, American Axle, Eaton, Magna, GKN, Daimler, Renault Nissan, Kamaz,
Caterpillar, Terex, JCB, Kobelco, Leyland, Komatsu and GE, among others.

What
has been your global footprint?

In
2006, RSB made its first foray overseas and acquired Miller Brothers in Michigan, USA. It further expanded its international footprint by
making another acquisition in Belgium in 2010 and by setting up a greenfield project in Mexico in 2011.

What
are the company’s future plans?

RSB
has several ambitious plans on the drawing board to grow its current automotive
and CMI business both in India and overseas through organic and inorganic routes.
The plans are in different stages of implementation and will unfold in the next
few years.