Maker of clamps and connectors, the Norma Group tested the Indian waters with a joint venture in 2008 and then decided to go alone in 2011. Now, it will move its production platform into new facilities where the company will have the capacity for volumes five times higher than the current output, reports Huned Contractor.

One size does not fit all. This is the philosophy that has stood Norma Group, a global market and technology leader in clamps, connectors, retainers and complete fluid systems for automotive and industrial applications, in good stead. So much so that this willingness to adapt to domestic conditions and requirements has led it, within a short period of four years, to set up its own manufacturing plant, in the Talegaon industrial belt near Pune, which will become operational within the next four to five months.

Norma Group first entered the Indian market in 2008 when it signed an 80:20 joint venture with Taurus Flexibles, a manufacturer of hoses for commercial vehicle applications. In 2011, it decided to forge ahead on its own steam and will now make a wide range of its products on the 12,000 sq.mtr facility of which 4,500 sq.mtr will be dedicated for production with scope for further ramping up of operations in the near future.

"We presently manufacture about 150,000 pieces of our products but our new factory will have the capacity to produce five times that amount," revealed Mr Bernd Kleinhens, Member of Management Board of this Germany-based conglomerate. The Norma Group has a portfolio of up to 35,000 parts of which the India focus will be on providing clamps and connectors to OEMs and a network of about 30 distributors across the country. Norma began its India operations by manufacturing plastic fuel lines and transmission oil cooler tube systems for cars and commercial vehicles from its NormaFlex programme, which it supplied to Tata Motors, Mahindra & Mahindra and Fiat fitted with its NormaQuick quick connectors.

The installed capacity of 500,000 fluid systems a year was gradually doubled while equipment to manufacture 40 million worm-drive hose clips from its NormaClamp range for charge air and exhaust systems was added by the end of 2009. "Using Norma clamps totally eliminates the efficiency-sapping leakages and though a clamp may seem such an insignificant product, what cannot be ignored is that a faulty clamp could be the cause of an accident or a vehicle catching fire," Kleinhens said.

Elaborating on why Norma Group has decided to invest in a production plant in India, Kleinhens said that they foresee a huge demand for their products in both automotive and non-automotive sectors building up over the next few years because of the tighter emission norms for vehicles.

"The implementation of Bharat Stage V norms in India will create a demand for more robust joints and we are all set to supply clamps and connectors of the best quality because we have almost achieved a zero-defect status in all production centres across the world," Kleinhens said.

While 70 per cent of its products are supplied to industrial OEMs, the rest find their way to the distribution network. In 2011, Norma Group had global sales of Euro 581 million.

Terming their operations in India a "success story", Kleinhens said that apart from the automotive sector, the focus is also on increasing their share in the agricultural and construction machinery. "We already have an impressive client base comprising Mahindra & Mahindra, Fiat, Volkswagen, Ashok Leyland, Kirloskar Group, Cummins Engineering, M&M Tractors and many others. The fact is that they all know about the precision with which our clamps and connectors are made. And it is this value that we put into products which has made Norma such a big brand," said Mr Sacheen Lathkar, General Manager - India.

What has also put a lot of wind in Norma's sails is its commitment to continuous research and development. "We have set up our R&D operations on two levels. In the first one, the R&D revolves around what our Indian customers need. For instance, our engineers here are gearing up to meet the demands of Bharat Stage V by using the research that has already been done in the US and Europe where these emission norms came into effect in 2009. Their efforts are now keyed up to customize the solutions for our customers here.

On another level, the R&D activities focus on finding solutions for products that are sold in lower volumes but call for greater technological expertise. For example, we do a lot of research on materials and chemicals because worldwide the need is to make the engines lighter in weight and this will call for greater precision in joining technology," Kleinhens explained.

For the Norma Group, it has never been just about making products. Rather, it's more about the total engineering package so that it takes into account elements like assembly time into the equation along with the necessity to reduce warranty costs. "We add a lot of value with our new technologies by reducing the risk of failure and furnishing our joints with higher integrity. Also, in areas where the accessibility into the very tight engine compartment is difficult, you save a lot of hassle and a lot of assembly time by utilising quick-fit connectors," Kleinhens said. 

As for the fear of being under-cut by the unorganised 'grey' market in India, Kleinhens makes it clear that they have never taken any such competition into account because they are not into "catering to the hardware shops and the roadside mechanics" who would but naturally want to stock and sell the cheapest variety of joints. "Our priorities for the India market are very clear. Norma has a brand value to live up to and our partnership with our customers extends beyond the production and selling aspect," he added. Incidentally, Norma India is a listed company in India and that's one reason why its management shies away from providing financial estimates for the future.

"Let's just say that we are all set for tremendous growth and our efforts right now are directed to making our production totally indigenous, including the sourcing of raw materials," Kleinhens said.