Valeo Facings Reach New Markets

Valeo Friction Materials India hit the bull’s eye with its export strategy. Ashish Bhatia looks at the all round efforts undertaken to reach new markets despite a raging pandemic.

- Ashish Bhatia

The outbreak of the pandemic aggravated the situation and impacted global trade equations. Indian auto component manufacturers, however, in the first half of the fiscal 2020-21, for the first time, witnessed a trade surplus. In effect, the positive trade balance meant that exports outweighed imports. Auto component exports, however, declined by 23.6 per cent to Rs.39,003 crore (USD 5.2 billion) in H12020-21 from Rs.51,028 crore (USD 7.4 billion) in H12019-20. Amidst the trend, Valeo Friction Materials India (VFMI) proved to be an exception as it hit the bull’s eye. In line with its export strategy, the company’s total export sales accounted for seven per cent of its total annual business in the year 2019.