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Menon Starts Bearing Supply to GM Canada

Menon Starts Bearing Supply to GM Canada

Menon Bearings (MBL), part of the Kolhapur-based Menon Group, has begun shipments of bearings, transmissions and bushes to General Motors.

Initial orders were placed over a year ago, but the deal ran into problems when the US automaker realised that samples submitted for eight parts would not pass certain tests.With those issues now sorted out, MBL has begun supplies of an estimated one million pieces per month for the US automaker’s Windsor, Ontario plant in Canada for use in vehicle transmissions.The order, valid for five years, is worth an estimated Rs 14 crore per annum.

For MBL, getting this order back on track meant investing in new machines, which were designed in-house and were about 45% cheaper than imported machinery and more efficient.

Nitin Menon, joint managing director, MBL told DNA Money, “With the new machines, we are ready to supply a range of products for other OEMs as well.”MBL competes with the likes of Federal Mogul, Gabriel and Bimetal Bearings, etc.Meanwhile, it has bagged one of its most prestigious orders from Tata Motors, for the Rs 1 lakh car, the Nano.

“We had never designed bearings as small as that of the Nano, but this experience, combined with that of working on the GM order, has worked wonders for us,” said Menon.The Nano bearings, designed by MBL, meet Euro 4 norms, among other parameters. The company used lead-free materials and opted for aluminium over copper.“The GM experience also helped as understand the requirements of packaging,” said Menon.

MBL is already a major supplier of products for Tata Motor’s 407 and 697 light commercial vehicles.The company’s volumes will rise significantly once the Nano is launched later this year. Asked about the margins, Menon said the sheer numbers will enable it to make a profit on this order.MBL does not have to be a part of the Tata Motors’ supplier park coming up at Singur, West Bengal, as “we can make all out supplies in one truckload,” he added.

Going forward, MBL will focus on making cast strips for aftermarket applications. These are to be used for heavy vehicles such as earthmoving equipment and “should help us be better equipped to even supply to OEMs at a later stage,” said Menon.

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