Delta Electronics pushes for capacity expansion

Chennai: Delta Electronics India is expanding its manufacturing capacity at Krishnagiri facility with two new factory buildings, anticipating demand from electric vehicle original equipment makers (OEMs) and industrial customers.In an interaction with TOI, Niranjan Nayak, managing director of Delta Electronics India said the company is ramping up the capacity, anticipating uptick in product portfolio ranging from telecom and energy infrastructure to power electronics and EV components. With this expansion, the company’s headcount in the Krishnagiri is set to increase from 3,750 to 5,000 in three years.He said though infrastructure products such as telecom and data centre solutions are major contributors of the company’s revenue currently, emerging industries such as mobility, building automation are key growth areas.The Krishnagiri site, located at Kurubarapalli, is part of its $500 million investment in India, announced in 2015-16. Out of which the company has so far utilised around 65%. He added that the company have plans for further growth, without commenting further. The Taiwanese company is also building a massive employee housing complex with a capacity of 6000 beds.Delta electronics supplies EV components such as motors, connectors, charging stations to top five two and three wheeler OEMs in the country. It is important to note Krishnagiri and surrounding region is has major electric two wheeler factories of Ola, TVS and Ather. Delta Electronics India aims to capture a 40% market share in India’s EV industry within the next three to five years.Nayak said they are working to build domestic vendor ecosystem and set up a vendor park at its campus. He said talks are in progress with its global vendors and efforts are taken to train domestic vendors.“Currently localisation is around 50% to 55%. Our supply chain will organise vendor development activities to share best practices, quality process, better manufacturing and sourcing process etc by hand holding throughout initial journey,” he said.Jimmy Yiin, Delta’s executive vice president of global business operations said, “The expansion is a milestone in its commitment to the ‘Make in India’ initiative. Our Krishnagiri manufacturing site has been strengthening India’s role within our global manufacturing capabilities since 2020.”Spread across 95 acres with over 3,800 employees, Krishnagiri campus currently consists of four factory buildings.It is focused on the production of power supplies and DC brushless fans for industrial and commercial applications, as well as telecom power systems, industrial automation solutions, data center infrastructure, and solutions for electric mobility.Expand your operations in South Tamil Nadu, says Chief minister M K Stalin Chief minister M K Stalin on Thursday broke ground for Delta Electronics’s expansion, and also inaugurated a smart manufacturing line. Speaking at the event, he said Tamil Nadu is leading in electronics production and in export hub. He urged the company to establish their facilities in the southern and central parts of the state, and set up an R&D centre in Chennai and Coimbatore.