Delphi Growing

Delphi Corp.'s Indian subsidiary is looking to increase capacity as it bulks up operations.

Despite the U.S. parent's Chapter 11 bankruptcy filing, Delphi Automotive Systems Ltd. in New Delhi continues to make investments, expand its business and increase revenues in order to keep pace with the growth of the Indian components industry.

Delphi India has four plants, a 52% joint venture with Lucas TVS Group for diesel-fuel injection systems and runs a technical center. The subsidiary has adopted Delphi's global best practices and processes, with an emphasis on getting it right the first time.

Opportunities in 2-wheel and commercial vehicles are increasing for component suppliers with India's introduction of tighter emissions regulations.

Delphi India to date has Rs4.05 billion ($90 million) invested in its operations there, and Prashant Shah, vice president-sales and marketing, says the supplier is on target to double that amount by 2010.

Delphi India currently is upping its initial Rs1.1 billion ($25 million) investment in its technical center by Rs450 million ($10 million) to add capacity and new areas of research.

Revenues are rising at 20% and are expected to reach Rs2.2billion ($500 million) by 2010, Shah says.

Long before Delphi Corp. filed for bankruptcy in October, the company announced the relocation of several product lines in India to save costs. The process now is accelerating.

An announcement is expected soon regarding the allocation of products to its global subsidiaries. Delphi also is identifying non-core assets for divestment or sale.