RSB Group Sets Long Term Target of INR 10,000 Crore The company clocked in around INR 3,000 crore last year, and expects to close between INR 3,200 to INR 3,300 crore this year.

For Nishit Behera, executive director of RSB Global, the decision to move up the value chain and take on complex projects such as gearboxes marked a pivotal shift in the engineering organization's business strategy. "We started not only with manufacturing but also excelling in the design and testing of these products. It allowed us to improve our capabilities and ultimately offer complete solutions to our customers," Behera explains. This strategic shift positioned RSB Group as a leader in providing end-to-end automotive solutions, enhancing its competitive edge in the global market.

As the group marks its 50th year of operations, Behera sat down with Entrepreneur India for a candid conversation to shed light on the company's key strategies, international expansion and evolving role in the dynamic global automotive industry.

RSB Group's journey is one of continuous evolution, and Behera highlights one critical turning point that set the course for the company's future growth. "One of the biggest milestones which directed us towards where we are is when we took up the entire assembly line for Tata Motors for the prop shaft. We migrated from being just a component manufacturer to producing complete aggregate systems. That was a key moment in our journey," he boasted.

Global Expansion

RSB Group has been steadily expanding its footprint across international markets, with a strong focus on the United States. Behera shares, "We are predominantly focused on the US market, with some presence in Europe and Korea. Our plant in Mexico serves as a hub for catering to US customers, and we also export a sizable amount from India to the US."

Despite a slower growth rate in Europe, the company's strategic expansion into North America is paying off. Behera is optimistic about leveraging the company's position in Mexico to further expand operations, stating, "We are in discussion with a few customers to support them with complete products, and that's an ongoing activity."

Navigating Market Challenges

RSB Group has successfully navigated the ups and downs of the automotive industry, particularly the recent slowdown in passenger vehicle sales. Behera points out that while the company's revenue from passenger vehicles has dipped, its strong presence in the commercial vehicle segment has helped maintain stability. "Our revenue is more linked to the commercial vehicle segment, which is functioning well in India. But we always keep new product development as a tool to counter market fluctuations," he shares.

To further diversify its offerings, RSB is expanding into counter-cyclical sectors such as industrial products and railways. Behera emphasizes the importance of this strategy by stating, "We are expanding into transmissions for industries and railways, which do not follow the same cycles as passenger cars. This helps us balance our top line."

Electric Vehicles and Partnerships

One of the most significant shifts in the global automotive industry has been the transition toward electric and autonomous vehicles (EVs). RSB Group has taken a proactive approach in positioning itself for this change. The company's collaboration with EVR Motors to develop electric motors marks a key step in its long-term strategy. "We designed and developed the e-Axle and collaborated with EVR Motors for the motor. Their expertise in designing smaller, lighter motors with higher torque complemented our engineering capabilities," Behera explains.

This partnership is part of a broader vision for the future of mobility. Behera believes the shift from internal combustion engines (ICE) to EVs will happen at varying speeds across different vehicle segments. "We feel that segments like three-wheelers and light commercial vehicles (LCVs) will see faster electrification. However, for medium and heavy commercial vehicles (M&HCV), there are still some technological challenges, so the growth will be slower."

RSB is also eyeing future collaborations to strengthen its position in the EV space. Behera hints at ongoing discussions with potential partners. "We are in talks with a couple of companies for other products. We believe in a collaborative approach where we can join forces to develop products faster," he said.

The Road Ahead

Looking to the future, RSB Group has set ambitious targets. The company clocked in around INR 3,000 crore last year, and expects to close between INR 3,200 to INR 3,300 crore this year. However, the company's growth plans are far more expansive. "Our goal is to cross INR 5,000 crore in the next three years, with a long-term aspiration to reach INR 10,000 crore," he added.

The roadmap for achieving this includes automating business processes, investing in new product development and offering complete solutions to customers. Behera highlights one example, "We are giving our customers the e-Axle now, but once we can provide the motor and controller, we will be able to offer a complete powertrain solution."

Behera is passionate about India's potential as a global leader in the auto component industry, but he emphasizes the need for a shift in mindset. "India needs to transition from being a manufacturer of parts to an organization that can design and provide complete solutions to customers," he says. This shift, he believes, will strengthen India's position in the global supply chain.

It is investing heavily in research and development to lead this transformation, and Behera is optimistic about the future. "The Atma Nirbhar Bharat initiative is pushing Indian companies in the right direction. We need to create indigenous solutions for Indian applications, rather than simply copying solutions from the US or Europe."