RSB Transmissions established its 13th plant in Mexico

RSB Transmissions, which is engaged in manufacturing parts for automotive, construction and farm equipment industries, has set up a new plant at Silao, Guanajuato State of Central Mexico to manufacture transmission components like differential cases, yokes, carriers and finished gears. This is the Pune-based auto component firm’s 13th plant globally. RSB Transmissions de Mexico plant will be catering to domestic OEMs like American Axle, Eaton, Magna, Getrag, GM and Chrysler and overseas clients based in Brazil and Argentina. "The cost competitiveness of both India and Mexico, the huge market of the US and the emerging market potential in Latin America provide a perfect synergistic platform to grow the business in Mexico for the benefit of all the three countries," said R.K. Behera. "Mexico is our gateway to Latin America. Our Mexico plant is very strategic and critical for us in our vision to become a global organisation," he added. It is also to be mentioned that RSB Transmissions, a Rs. 1,000-crore group, has 10 manufacturing plants spread over 7 locations in India and one in the US. Private equity investors IL&FS Investment Managers (IIML) and Evolvence hold a 24.5 per cent stake in RSB Transmissions, while the remaining is held by brothers R.K. and S.K. Behera. The company is also planning to go for an IPO sometime and would invest about US$ 50-60 million in Mexico in a span of three years and grow the topline to US$ 80-100 million in a period of four years. RSB manufactures propeller shafts and components, an array of axles, including front axle, trailer axle, tractor axle and dummy axle, fully finished gears and shafts and transmission components like differential cases, yokes and carriers. For the construction equipment segment it manufactures heavy fabrications and aggregates like frames, arms, booms and buckets.