Impacted by the global slowdown, the $5.7 billion Timken has tweaked its business plans and shifted market focus from Western Europe to
Eastern Europe and from America to Asia. The bearing major, which has invested $25 million at its third Indian manufacturing facility near Chennai, has put on hold capacity expansion plans.

The first phase of its tapered roller bearings (200-300 mm diameter) units is on schedule. The company had originally planned to raise its production capacity from 3.10 lakh rings annually to 4.20 lakh this year.

"We are waiting for an opportune time to go ahead. With customers keen on reducing inventories, we have faced the impact much harder in the last six months. But, despite market downturn, there are new opportunities," Timken India MD Gordon Robinson told ET, after donating art mural works to the Adyar Cancer Institute here on Wednesday.

There is enough room in the existing facility, which offers the potential to double capacity, he said.
Unable to meet its export target of 70-80% to the US (decline by 5-10%), Europe and other markets, Timken has turned its eyes on Asia. Industrial segments, especially infrastructure, power, off-highway and oilwells, continue to be focus areas.

Underscoring the importance of Asian market, Mr Robinson said it believed in being close to its customers. This follows its engagement with new customers like Caterpillar, L&T and Telco.

It has added 8-10 new big customers, with power giant BHEL giving it a $7.7 million order recently. Indian Railways, its biggest customer, has not reduced order volumes. "We also see robust growth in power, steel and heavy construction," Mr Robinson said.

Timken is also handling maintenance portfolio for steel makers like Tatas, Jindals and Essar. On August 1, Timken India, a subsidiary of the global Timken Company, would have an Indian head to steer the operations. The appointment of Mr Ajay Das is among a series of strategic initiatives that the bearing company has lined up.

"We are the first bearing company to be located in a special economic zone and this plant was built in the fastest time. I am moving back as I have completed the mission of developing a full-fledged Indian management team. Ajay brings with him expertise, which ranges from managing different business units to supply chain management in Timken US," he said.

Business environment has changed such that multi-skilled talent is the need of the hour, Mr Robinson noted.

From local-for-local approach that Timken tested out in Jamshedpur, it has started the local-for-global market experiment. This has been possible due to its 400-plus Bangalore design and engineering centre and the manufacturing operations in Chennai, where it has 120 employees.

"About 30% of Timken's global IT requirements are met by the Bangalore centre. Instead of outsourcing back office operations, we chose to insource. Even the payroll for America is designed by this centre," he said. Timken India contributes nearly 1% of the global turnover.

The company, which is expanding its product array, has a research tie-up with Madras University and IISC of Bangalore. It is ready to launch 'bearings-grease-industrial seals' in a packaged format later this week.

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