By IANS,
New Delhi : Eyeing a share of the global $750 billion market, Dassault Systemes of France and India’s Argentum Engineering Design (AED) Monday inked a landmark pact to provide automobile component solutions for original equipment manufacturers (OEMs).
“India is fast becoming a hub for automotive manufacture and design. This agreement will drive innovation and enhance efficiency in the Indian automotive industry,” B.V.R. Subbu, founder and board member of AED parent Argentum Motors Pvt. Ltd., told reporters at the signing ceremony here.
“Like India’s IT strengths fuelled the BPO boom, we will do similarly for the automotive industry as an engineering content provider,” added AED chief executive officer S.P. Pradhan.
Under the memorandum of understanding, Dassault Systemes will license its 3D design and product lifestyle management (PLM) software to the centre of excellence AED has created at its facility at Greater Noida on the capital’s outskirts, giving it the capability to design, certify, manufacture and deliver powertrains initially and other automotive – as also aerospace – products at a later stage.
The software, an improvement on the computer aided design (CAD) concept, provides a 3D vision of the entire lifecycle of a product from conception to maintenance and recycling.
“We are defining the next level of solutions in which 3D will be the new media of communication. This will enable the testing of a car’s ergonomics before it is built,” explained Christian Nardin, president of Dassault Systemes Asia.
“In the changing global economy, India is now a major player in the automotive industry. By entering into a formal relationship with Argentum Engineering Design and working together at the centre of excellence, we will provide innovative solutions tailored to Indian customers,” Nardin added.
The centre of excellence and related facilities have been set up at what was once the factory of south Korean car maker Daewoo Motors that was shut down after the parent company was hit by a major corruption scandal earlier this decade.
AED acquired the plant for Rs.1.2 billion and has completely renovated its manufacturing facilities.
“We should be up and running by next month,” said Subbu, who had scripted the success story of Hyundai Motors.
According to Pradhan, the global PLM pie is valued at $750 billion and India’s share in this could be $15 billion in two to three years. With the market set to expand to $1 trillion by 2020, India’s share could rise to over $50 billion, he added.