Looking at growth, GoldSeal-Saargummi applies CV thrust.
Bodyseals find use in automobiles as effective barriers to noise, water and air tightness apart from performance functions such as acoustic insulation and impact resistance. They also play a role in fire proofing. The high precision requirements call for excellence, turning the process of manufacturing automotive body seals into a niche business. Bodyseals are a domain of specialised manufacturers like GoldSeal, which was established in 1958 at Mumbai. The manufacturing infrastructure of the company comprises of plants at Daman and Sanand. The company also has a small supporting unit at Mumbai with fraction of a capacity of the two other plants. Supplying rubber sealing products to the auto industry since the pre-liberalisation era, it was a penchant for growth that saw GoldSeal ink a joint venture in 1997 with CQLT-Saargummi of Germany. In the same year, it also inked a joint venture with MGI Coutier Avon Automotive, USA. Both are claimed to be technical in nature. The MGI Coutier Avon Automotive venture enabled the company to enter into the field of advanced coolant, water and fuel conveying hose systems. With the winds of liberalisation gaining force at around the same time, the pact with the two companies presented GoldSeal an ability to cater to the needs of modern automobiles made by new, global automobile manufacturers. While a large chunk of what the company made was supplied to passenger vehicles, the company has come to establish itself as a supplier of sealing solutions to commercial vehicle manufacturers as well.
Bodyseals for modern automobiles
Particularly active in the supply of bodyseal, the GoldSeal-Saargummi joint venture caters to commercial vehicle manufacturers like Mahindra, Bajaj Auto, Force Motors and Tata Motors. Talks are currently on with Daimler India Commercial Vehicles, Volvo Eicher Commercial Vehicles, Ashok Leyland, AMW and Atul Auto. Commercial vehicles, said Pilloo C. Aga, Director, GoldSeal, constitutes to between 20 and 25 per cent of GoldSeal-Saargummi’s business. The company, announced Urvaksh C Aga, Director, GoldSeal Engineering, is a single source supplier of truck cabin bodyseals to MAN Trucks India. Clocking a Compounded Annual Growth Rate (CAGR) of 30 per cent in FY2014-15, the company is tapping into Saargummi’s technical prowess to provide world-class solutions to automotive manufacturers. The bodyseals that are supplied to commercial vehicles are made at the Daman plant primarily. The Mumbai plant at Bhandup has a small finishing operation dedicated to Mahindra.
Catering to Mahindra’s small commercial vehicles like the Bolero pick-up, GoldSeal-Saargummi according to Aga, has the OEMs satisfied. They are therefore refraining to seek partnerships elsewhere, she mentioned. “We haven’t got products that ensure spectacular groowth, we are instead in those that are relatively unaffected by market dynamics,” averred Urvaksh. Looking to grow by supplying appropriate bodysealing solutions to modern automobiles rather than bank on volume based products, the company has established itself as a strong leader in the western region. it is also looking beyond; it is preparing to venture into newer markets. GoldSeal-Saargummi commissioned the Sanand Greenfield plant in 2015. It was built in less than a year’s time, and at an investment of Rs. 60 crore. The plant has six extrusion lines. Phase one of the plant, currently operational, was built with an investment of Rs. 40 crore. Work on Phase 2 is on, and will entail an investment of Rs. 20 crore. Expected to be commissioned in the next three years, it will hike the capacity substantially. Stated Khursheed Cyrus Aga, Additional Director, Gold Seal Engineering, that the current financial year (FY2015-16) is a year of consolidation. It is a year that will call for sweating of the assets she added. She also drew attention to the need for frugal engineering, and how important it would be for businesses to align themselves with the need of the time. Focus, said Pilloo C. Aga, is on brand innovation. We hope to achieve it with the help of frugal engineering. Two per cent of GoldSeal’s turnover fuels the core of the company’s business strategy. Attention is clearly on delivering the requisite quality as new regions and entities come on board.
If the finite element analysis out of Saargummi’s FEE database is used to carry out simulation tests, it also reflects on the attention to quality and accuracy, the company subjects its products to. Extensive validation and testing processes are carried out. Said Khursheed, that the company’s facilities are TS 16949 & ISO 14001 certified; are engineered to have controlled processes to deliver consistent and technically sound products. Irrespective of them finding use in the cabins of agricultural and earth moving equipment, medical equipment, and enclosures in industrial equipment. Every compound batch, averred Aga, is tested for Critical To Quality (CTQ) properties.
Boasting of sophisticated mixing equipment in addition to automatic weighing and direct feeding, the Sanand plant, spread over 9000 sq.m, boasts of sophisticated mixing equipment in addition to automatic weighing and direct feeding lines. Complete batch-to-batch traceability with heavy automation at Sanand has ensured 100 per cent repeat-ability. “A critical element when it comes to ensuring a consistent rubber compound is the one that ensures insertion extraction,” explained Darius .C Aga, Director, GoldSeal Engineering Products.
It would be clear by now, that the bodyseal products, sold under the marketing brand name of Vario Seal, Seal Tex, Vario Proof, Vario light, Vario section, Solid light and Endless GoldSeal, find use in automobiles of diverse nature, including commercial vehicles. They enjoy a wide range of application in commercial vehicles, and in particular as part of the windscreen seal, glass run seal, outer door seal, roof weather strip seal, waist belt seal (inner and outer), door seal (inner and outer), and tank strap among others.
Aiming to tap into newer territories and business areas like industrial applications (control panels, enclosures for machinery, generator enclosures, construction equipment), GoldSeal is hoping for FY2017 to bring in good growth. A good part of this growth is expected to come from commercial vehicles.