Performance in Q3CY20 predominantly came on the back of strong market recovery, said Harsha Kadam, CEO of Schaeffler India in an interview to CNBC-TV18.

In the industrial business, Kadam said that railways is a strong sector and they have a clear strategy to increase their share in the sector. “One of the strategy is we will continue to invest heavily into our localization plans to make the products here in India. We are also eyeing the railway export market; the necessary steps and processes are well underway for us to take us and India to start exporting to American railways. We are going through the approval process currently.”

“Our plan is to grow strongly in the railways sector to double digit growth rates.”

“That was the primary factor because many of the sectors began to recover and we were able to capitalize on the recovery.”

However, Kadam added that stringent cost control measures and the counter measures too helped improve the bottomline.

Kadam said that post unlock there has been a strong recovery in the passenger vehicle sector and light commercial vehicle sector. He further added that there are some spurts of demand in the commercial vehicle sector but don’t know if it is sustainable.

Kadam added that their strong presence in the passenger vehicle sector helped them leverage their readiness in riding the BS-VI wave.

In terms of content per vehicle, Kadam said last year their content per vehicle was in the range of 33-34 euros per vehicle. However, he expects the content per vehicle to rise as high as 45-46 euros going forward.

(Edited by : Bivekananda Biswas)