Emitec Technologies, a prominent global player in emission control technologies for the automotive industry, is redefining its strategies to achieve substantial growth in the Indian market. Despite the ongoing shift towards electric vehicles (EVs), Emitec aims to increase its annual turnover by over 30% in the next 3-5 years. The company also envisions India as a potential export hub for its latest products, encompassing electrically heated catalysts and closed coupled compact catalysts.
Emitec’s Focus on Growth and Diversification
With its recent separation from Vitesco Technologies, Emitec is charting a new business strategy that targets the expansion of segments such as light and heavy commercial vehicles (LCVs and HCVs), tractors, and generator sets. Despite its current market leadership in the two-wheeler segment, holding around 60% share, Emitec identifies significant growth opportunities in other sectors.
Rolf Bruck, the company’s managing director, emphasized that India is poised to play a pivotal role in Emitec’s growth journey, accounting for about one-third of its revenue. Bruck also revealed a substantial order from an Indian commercial vehicle manufacturer, indicating India’s importance in the company’s plans. Globally, Emitec generates around $160 million in annual revenue.
Investment and Collaborations for Expansion
Emitec’s growth strategy entails aggressive investments in new product launches, capacity expansion, and research and development (R&D). The company is also open to collaborations and partnerships that align with its strategic expansion goals. Additionally, Emitec is considering India as a competitive manufacturing hub for its sought-after products like electrically heated catalysts and closed coupled compact catalysts, which have significant global demand.
Strategic Move Amidst Global Supply Chain Changes
Emitec’s decision to concentrate on the internal combustion engine (ICE) segment while other automotive companies shift focus towards EVs is strategic. The company believes that there remains a substantial market for ICE vehicles in India, and it can play a pivotal role in curbing emissions from these vehicles. With India’s growing auto clusters, it presents an attractive option for supply chain diversification and reducing dependence on China.
Ownership and Agility
Emitec’s ownership has transitioned to Lenbach Equity Opportunities II. GmbH & Co. KG (LEO II Fund) and is managed by the DUBAG Group. This change is set to provide the company with enhanced independence and agility in developing new substrate technologies, expanding its market presence, and catering to global customers.
Emitec’s ambitious growth plans in India stand out as a testament to its commitment to innovation and adaptability. Amidst the evolving landscape of the automotive industry and the shift towards cleaner technologies, Emitec’s focus on ICE vehicles underscores its confidence in addressing emissions concerns. As the company invests in its future, it positions itself to contribute to India’s automotive ecosystem while strengthening its global footprint.
