WABCO Holdings Inc. (NYSE: WBC) today announced that the company has executed its previously announced plan to raise its ownership position to 75 percent in its joint venture, WABCO-TVS (India) Ltd., further strengthening not only WABCO's presence in India but also its capabilities to connect with and grow in all of the world's emerging markets.
Based on a court-approved plan, WABCO increased its equity investment to 75 percent from 39.2 percent in WABCO-TVS (India) Ltd., shares of which are publicly listed in India on the Mumbai, Madras and National Stock Exchanges. WABCO also transferred to the TVS group its holding in Sundaram-Clayton Limited, which contains the non-brakes business of its Indian joint venture.
WABCO-TVS (India) Ltd. designs, manufactures and markets conventional braking products, advanced braking systems, and other related air compression products and systems, directly serving customers locally and internationally through WABCO.
The regional leader in its market, WABCO-TVS (India) Ltd. has three factories. The factory located in Ambattur, Chennai recently received the prestigious Total Productive Maintenance (TPM) Excellence Award from the Japan Institute of Plant Maintenance, among other customer and industry awards. WABCO-TVS (India) Ltd. has also been recognized as well on its way as a global benchmark for implementing lean manufacturing, according to the Lean Enterprise Institute. Two other factories inaugurated in 2008 -- one in Mahindra World City in Chennai and another in Jamshedpur -- operate in the same TPM excellence league as the factory in Ambattur, performing at benchmark-setting levels of efficiency and quality.
WABCO-TVS (India) Ltd. also has advanced software design and development centers located in Chennai, including more than 70 engineers who develop embedded software for applications in electronic braking, stability, transmission and climate control. In addition, the company has a center of excellence in mechanical engineering located in Ambattur, Chennai, including more than 70 engineers who design and develop products and systems for India and other markets worldwide where WABCO operates.
WABCO-TVS (India) Ltd. employs over 1,000 persons and reported approximately $95 million in sales in its fiscal year 2008-2009. WABCO has participated successfully in this joint venture for more than 40 years.
"Taking majority control of this world-class, award-winning company marks another major step in expanding WABCO's global network of manufacturing, sourcing and engineering capabilities, while enhancing WABCO's already broad and successful footprint in Asia. We will also be able to further leverage WABCO-TVS's unique engineering and product development platform which is capable of understanding the specific needs of emerging markets," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "We are thankful to the TVS Group for its key role in establishing our long-term partnership as one of the world's foremost contributors to the commercial vehicle industry, particularly in India."