3. Steering the Management Regionally
[1] DENSO’s Business Expansion and Strategy: ‘INDIA PROJECT’ launched
INDIA Business Revival & Business Restructuring
In the dynamic landscape of the Indian automotive industry, DENSO found itself at a crucial juncture in 2012. The backdrop was set by the political and economic conditions, portraying India as a remarkable country and a highly attractive market, particularly for small, low-cost vehicles. Riding on the wave of this potential, DENSO projected a sales increase of over 40% from 2009 to 2011, fueled by a comprehensive reform in production supply. DENSO Haryana Pvt. Ltd. (DNHA) evolved into a complex business unit, strategically positioning itself to contribute significantly to this growth.
To fortify its presence and capitalize on the burgeoning Indian market, DENSO initiated the ambitious 'INDIA PROJECT' in a bid to achieve robust business expansion by 2015. This strategic endeavor gained momentum in 2012, marked by key initiatives that reshaped DENSO's operational landscape.
A pivotal move within the 'INDIA PROJECT' involved the transfer of ASMO's small motor business from DNIN to DNHA. This strategic realignment aimed at optimizing production capabilities and enhancing efficiency, reflecting DENSO's commitment to staying agile in response to market dynamics.
Simultaneously, DENSO's commitment to technological innovation and customer-centric solutions manifested with the establishment of the Research and Development (R&D) Technical Center at DENSO India Pvt. Ltd. (DIIN). This marked a significant shift in DENSO India's approach, focusing on sales expansion to local customers through development support. The inception of the Thermal R&D Center, a joint venture with Subros in 2011, further solidified DENSO's dedication to advancing thermal technologies in the Indian automotive landscape.
As part of the 'INDIA PROJECT,' a new manufacturing unit was set up at Jhajjar, redefining DENSO Haryana Pvt. Ltd. as a complex business unit. This strategic expansion aimed not only to meet the demands of the Indian market but also to position DENSO as a frontrunner in providing cutting-edge solutions.
The 'INDIA PROJECT' was more than just a business expansion; it was a comprehensive strategy that leveraged DENSO's strengths in technology, production, and research to navigate the complex Indian automotive terrain. This chapter unfolds the narrative of DENSO's strategic initiatives, showcasing its resilience, adaptability, and foresight as it embarked on the path of sustainable growth in the Indian automotive sector.