Company sources told FE that, RBL is looking at Europe as it is considered to be one of the major potential markets for the company. We have already started targeting Europe by getting approvals and licences for exporting products. Our idea is to have a whole range of products to suit the market. RBL has got licence for exporting disc pads for Ford Focus in Europe. In Europe, as per R90 regulations, we need to get approvals and licences for every product which is exported, sources said.
The company will target Europe in general and England in particular for exporting automotive disc pads, as they are potential markets. Even if RBL captures one per cent of the European market, we will be able to increase our exports to 15 per cent over the next five years, sources said.
RBL has an ambitious target of pushing up its exports to 15 per cent from the present level of five per cent over a period of five years.
At present, the company exports to Australia, Sri Lanka and the Middle East. As of now, export income of RBL stands at Rs 6 crore and this is expected to reach Rs 24 crore in the next five years.
RBL is also looking out for opportunities to tap the railways department in Australia, Turkey and England for exporting railway blocks. The company, it may be recalled, had successfully obtained an order from Sri Lankan railways for exporting 27,000 railway blocks.
The company is taking efforts to strengthen its distribution channel for the overseas markets. We have distribution agreement with a dealer in the UK and hope to add two more by the end of this financial year, they said. The company would be tying up with a Turkish dealer for a distribution agreement for entering Turkey which is likely to happen in early 2004.
Talking about the research and development activities, sources said, RBL plans to develop advanced technology to meet export demands. We will not look at capacity addition in any of the three plants - in Chennai, Hyderabad and Pondicherry - for increasing production levels. Our idea is to rely on implementation of advanced technology for better production, they added.