Under this arrangement with Holset, Indo Schottle will be supplying precision components to Holset plants in Huddersfield, UK and Charleston, USA. The company has erected a separate facility for this purpose. It has received all necessary permissions to operate this as an 100 per cent export-oriented unit. Plant and equipment has been sourced from Germany and Japan and supplemented with plant and equipment received from Holset.

The company will be following just-in-time delivery systems. To meet this requirement of the customer, a supply chain has been established with warehousing facilities in the UK. Commercial production is expectd to commence in the first phase in August 1999. This covers two components and the production of the third components - journal bearing is expected to commence in December 1999. The company will carry out manufacturing under QS 9000 environment. The project cost is Rs 4.5 crore. It expects to attain annual export revenues of upto Rs 5 crore by 2002.

The Indo Schottle has been engaged in production of auto components for 12 years. Its present range of products include valve collets and tappet screws. In both cases the company employs unique technology/ processes and has been therefore able to supply larger volumes at consistent quality in time. Customers include all major OEMs MUL, Telco, Hero Honda, Bajaj Auto, Cummins, Mahindra & Mahindra. It is also a supplier to an European OE, Skoda and it has developed valve collets for the Mercedes Benz Smart Car.