Chennai: The city-based Rs625 crore Lucas TVS Limited is considering putting a plant in Iran.

According to T K Balaji, chief executive and managing director, the plant in Iran will depend on the business volumes generated there. Currently the company is exporting starters to Sapia, an Iranian government car company.

"Our strategy is to look at markets that are similar to India — cost and re-use conscious. We have started offering starter samples to Chinese commercial manufacturers. We want to grow outside India," he said.

The company is the country''s leading manufacturer of auto electricals-starters, alternators, dynamos / regulators, wiper motors, ignition coils, fan motors, etc.

According to Balaji, the company invests around Rs40 crore annually on an average for expanding capacity. Lucas TVS has three plants in India — one each in Chennai, Pondicherry and Rewari in Haryana.

"Our corporate vision is to reach a turnover of Rs1,400 crore by the year 2010 and earn one third of that from exports," he added. Currently the company earns around Rs40 crore from exports.

This year Lucas TVS joined the list of Deming medal winning companies — the fifth in the TVS group.

The total quality management (TQM) process initiated in the company in 1985 has resulted in immense benefits to the company. From customer returns of 1,800 parts per million (PPM) in 1985, the figure came down to 50 PPM. Customers who experienced zero defective supplies from the company has shot up from 12 per cent earlier to 85 per cent.

Speaking about new product development — one of the benefits of Deming medal process — K R Anandakumaran Nair, executive director said, "A fuel-saving device for passenger car is in the process of finalisation." The new product will stop the engine''s fuel consumption while idling.

The other products are internal fan alternators, gear reduction starter motors for cars and commercial vehicles.

"The focus now is on reducing the component weight and size," Nair added.

When queried about the increasing steel costs Nair said, the group is planning to consolidate its requirements and leverage the total volume to source the materials at an attractive price. The group has already started doing that in the case of steel and aluminium.

"We are also looking at eliminating / reducing waste in the production process."