BHTC: Behr-Hella sees India business doubling to form 10% of global revenue in five years

Behr-Hella Thermocontrol GmbH (BHTC), a leading multinational player in the climate control and thermal management solution for the auto industry, expects its India business to grow at double the pace of its global operations.

The company plans to tap into the growing domestic market and use India as a critical sourcing base for electric vehicle (EVs) components and solutions.

“We expect India to grow at a CAGR of 15% in the next five years, as against a plan of 7% growth we expect globally,” said Michael Jaeger, CEO of BHTC group, who was in the country along with other board members of the German firm to inaugurate its new manufacturing facility in Pune. “The new facility will cater to the growing demand in the country but will also be a key strategic export hub for our thermal management system and automotive displays, or human-machine interface solutions,” he told ET.

BHTC has committed Rs 100 crore to expand the facility in Pune. There is big growth plan for global development from India and the new facility will focus on both manufacturing and R&D side, Jaeger said. “The centre of competency here will also work on software development for global projects.”

He said the company plans to ramp up “R&D strength to about 300 very soon” to accelerate its global development activities in the coming months. “Our engineers in India are already working on the latest technologies and innovations for local and global customers,” he said.

The firm will leverage its local expertise to provide end-to-end, innovative and cost-effective solutions to global and local customers, the CEO said.

BHTC expects the share of its Indian business to double to about 10% of its total revenues and profits in the next five years. The firm believes that the shift towards electrification adds to the opportunities for the company to grow.