ZF Leverages Indian Operations

July 16, 2016

Jennifer Shuttleworth

ZF wants to develop India into a global sourcing hub. Company executives spoke of this plan at the recent ZF India Supplier Day.

ZF has initiated the “Wind of Change” campaign to reinforce its supplier base in the Indian market. In an announcement on ZF India Supplier Day, the company said it aims to reach EUR100 million worth of export from India by 2017. "We want to develop India to a global sourcing hub for ZF," said Wilhelm Rehm, member of the board of management of ZF Friedrichshafen AG and responsible for Corporate Materials Management. "India has always had an advantage of a good supplier base, technical capability and availability of skilled talent proving it to be a premier destination for sourcing."

To accomplish the strategic goal, ZF India has set up a global purchasing office (GPO) in the ZF Chakan Plant, which is the headquarters for ZF in India. According to the company, this structural change will help to enable local commodity managers to reach a higher frequency and engage in deeper interaction with the supplier base. It also provides the suppliers the much-needed window into a global organization offering multi-product opportunities. The team will also function as a regional commodity office, allowing ZF to develop a quality portfolio of products for the Indian and overseas markets. The organization is streamlining its operations to create a real-time link with its strategic suppliers who are working closely toward a strategic growth course for various products to support the GPO.

"ZF aims to further strengthen its presence in India, and endeavor to seize any prospects related to castings, forgings and stampings while going forward with value-added products and assemblies," said Horst Wiedmann, Executive Vice President, Head of Strategic Materials Management & Central Services ZF Group. Currently, ZF is exporting EUR35 million from India with intentions of increasing this figure to EUR100 million by 2017.

"We at ZF have always realized that the Indian market helps manufacture international quality products," said Suresh KV, President for ZF in India. "We have been present here for over three decades and aim to position India as a major sourcing hub which can further help our presence on a global scale."